EU Commissioner Calls For Global Agreement on Crypto Regulation
Mairead McGuinness, the European Commission’s commissioner for financial services, financial stability, and capital markets union, is urging global regulators to collaborate to address possible risks in the cryptocurrency industry.
McGuinness said the European Union and the United States could help lead the world in a legislative strategy for cryptocurrencies that respects the advantages of the new technology while tackling “significant risks” in a Sunday opinion article in political media source The Hill. The EU commissioner mentioned the volatility of some assets, the potential of insider trading, the possibility of Russia using cryptocurrency to escape sanctions, and environmental concerns.
“To make rules on crypto fully effective, crypto requires global coordination and joint international principles,” she added, “a global agreement on crypto should first enshrine that no product remains unregulated. Second, supervisors should collect and exchange information globally. Third, any agreement must protect retail investors. Fourth, the crypto ecosystem should fully integrate environmental considerations.”
According to the EU commissioner, European authorities have already taken steps to offer a complete framework on cryptocurrency with the Markets in Crypto Assets, or MiCA, proposal, which effectively standardizes all laws for crypto service providers across the EU. She also stated that President Joe Biden’s March executive order “charts the way for US regulation of crypto-assets” by establishing a framework for government entities to manage crypto-related policies and enforcement actions.
“We have no time to lose in managing this transformation for the benefit of investors, businesses and wider society,” McGuinness said.
In addition to its work on MiCA, the European Commission has sought advice from financial services experts on the potential launch of a digital euro. As of April 29, the European Central Bank has commenced experimental development of a digital euro consumer interface. McGuinness stated that the European Commission “stands ready” to draft legislation to support a central bank digital currency.
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