Mairead McGuinness, President of the European Commission Financial Services, Financial Stability and Capital Markets Association, has sparked a new discussion regarding the regulation of cryptocurrencies, due to three major events seen in the ecosystem.
In a written statement for his address in Brussels on Tuesday, McGuinness said Celsius Network’s suspension of withdrawals, as well as the collapse of Terra (initially named LUNA, now LUNA Classic “LUNC”), demonstrated the need for crypto-asset regulation. told. European Union. He added that concerns about the potential use of cryptocurrencies to circumvent sanctions against Russia were also a factor.
“Regulation is required for all crypto assets, whether price volatile cryptoassets or ‘stable currencies’,” McGuinness said. “We could easily impose sanctions if the legal basis for cryptocurrencies existed, if all crypto-asset service providers were regulated entities and were subject to effective regulation in the European Union.”
The EU executive added that the proposal, which is currently under review by the European Parliament, the European Commission and the European Council, plans a “political settlement” under the French government through Markets in Crypto Assets (MiCA):
MiCA rules; It will be the right tool to address concerns about consumer protection, market integrity and financial stability. Given the latest developments, this is a very urgent situation.
— Présidence française du Conseil de l’UE 🇫🇷🇪🇺 (@Europe2022FR) June 14, 2022
In the proposal in the MiCA draft, all crypto firms serving within the European Union will likely be subject to the same rules. Initially, the measure was delayed due to concerns about a potential ban on Proof-of-Work (PoW) cryptocurrencies, but it left the committee in March.
In addition to its work to regulate digital assets within the EU, the Commission will conclude on Thursday a consultation launched in April by financial services experts to focus on the potential rollout of a central bank digital currency (CBDC). McGuinness said in May that the EU commission would be “ready” to pass legislation for the Digital Euro.