Mairead McGuinness, the European Union EU commissioner for financial services, financial stability, and capital markets union, is urging a global effort toward regulating and addressing possible concerns in the crypto sector.
McGuinness said the European Union and the United States could help lead the world in a legislative strategy for cryptocurrencies that respects the benefits of the innovative technology while tackling “major concerns” in a Sunday opinion article in political media source The Hill.
The volatility of some assets, the potential of insider trading, the likelihood of Russia using cryptocurrency to escape sanctions, and environmental concerns were all mentioned by the EU commissioner.
“To make crypto regulations completely effective, worldwide coordination and shared international principles are required,” McGuinness stated, adding:
EU’s move on regulating crypto framework
According to the EU commissioner, European regulators have already taken steps to offer a complete framework on cryptocurrency with the Markets in Crypto Assets, or MiCA, proposal, which essentially standardizes all laws for crypto service providers across the EU.
She also stated that President Joe Biden’s March executive order “maps the way for US regulation of crypto-assets” by establishing a framework for government entities to handle crypto-related policies and enforcement actions.
McGuinness stated, “We have no time to waste in managing this transformation for the benefit of investors, businesses, and society.”
In addition to its work on MiCA, the European Commission has requested input from financial services experts on the prospective implementation 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 introduce legislation to support a central bank digital currency.
