EU commissioner reiterates need for 'regulating all crypto-assets'

Published at: June 14, 2022

Mairead McGuinness, the Commissioner for Financial Services, Financial Stability and Capital Markets Union at the European Commission, is moving forward with a discussion on regulating cryptocurrencies amid three major events in the space.

In written remarks for a speech in Brussels on Tuesday, McGuinness said the Celsius Network's recent suspension of withdrawals, as well as the crash of Terra (originally LUNA, now LUNA Classic, or LUNC), show the need for crypto-asset regulation in the European Union. She added that ongoing concerns about crypto potentially being used to circumvent sanctions on Russia were also a factor.

“Regulating all crypto-assets — whether they're unbacked crypto-assets or so-called "stablecoins — and crypto-asset service providers is necessary,” said McGuinness. “Sanctions implementation could be facilitated if our framework on crypto was in place, and if all crypto-asset service providers were regulated entities and subject to effective supervision in the European Union.”

The EU commissioner added that she planned to discuss a "political compromise" under the French government through the Markets in Crypto Assets, or MiCA, proposal currently being reviewed by the European Parliament, the European Commission and the European Council:

“MiCA rules will be the right tool to address the concerns on consumer protection, market integrity and financial stability. This is something that is so urgent given recent developments.”

#EU2022FR | Today, #trilogue on the regulation on Markets in crypto-assets #MiCA https://t.co/cvyS8Xh9vZ

— Présidence française du Conseil de l’UE (@Europe2022FR) June 14, 2022

Under the MiCA draft proposal, all crypto firms providing services within the European Union would likely be subject to the same rules. Initially, the measure was idelayed due to concerns about a potential ban on proof-of-work cryptocurrencies but went out of committee in March.

Related: EU commissioner calls for global coordination on crypto regulation

In addition to its work on regulating digital assets within the EU, the commission will on Thursday close a consultation launched in April for financial services specialists to weigh in on the potential rollout of a central bank digital currency. McGuinness said in May the EU commission would "stand ready" to introduce legislation behind a digital euro.

Tags
Regulation
Cryptocurrencies
Law
Europe
European Union
Related Posts
French Financial Regulator Responds to EU’s Crypto Consultation
As the European Commission finished its public consultation on cryptocurrency assets in March, France’s major financial regulator stepped in to express its stance on the matter. The Autorité des Marchés Financiers (AMF), the stock market regulator in France, has published an official response to the EC consultation, outlining some basic proposals regarding their own vision for crypto assets within the EC’s approach. It’s too early to establish a classification of crypto assets In an April 7 statement, the AMF argued that the classification of crypto assets should be based on the existing categories in order to differentiate between crypto assets …
Regulation / April 9, 2020
European Parliament postpones crypto bill vote over proof-of-work
The parliament of the European Union is delaying a vote on a framework aimed at regulating cryptocurrencies amid concerns over proof-of-work mining. In a Friday Twitter thread, European Parliament economics committee member Stefan Berger said the government body had canceled a vote on the Markets in Crypto Assets, or MiCA, framework scheduled to take place on Feb. 28. Berger said parliament needed to clarify “the question of proof-of-work” in discussions with stakeholders to ensure a proper legal framework, adding that some might misinterpret the proposal as a ban on crypto. “The discussion about MiCA indicates that individual passages of the …
Regulation / Feb. 25, 2022
European Parliament will hold vote on crypto bill without PoW provision
The parliament of the European Union has scheduled a vote on a framework aimed at regulating cryptocurrencies after addressing concerns over proof-of-work mining. In a Monday Twitter thread, European Parliament economics committee member Stefan Berger said the committee will vote on the Markets in Crypto Assets, or MiCA, framework on March 14 following the submission of a final draft of the bill. As the rapporteur — the person appointed to report on proceedings related to the bill — Berger said the legislation will no longer include text which some interpreted as a possible ban on proof-of-work crypto mining. “With MiCA, …
Regulation / March 7, 2022
EU bans providing 'high-value crypto-asset services' to Russia
The Council of the European Union has cut Russians off from certain cryptocurrency services as part of a package of restrictive measures against Russian President Vladimir Putin’s “brutal aggression against Ukraine and its people.” In a Friday announcement, the EU council said it would be closing potential loopholes in using digital assets for Russian entities and individuals to evade sanctions with a “prohibition on providing high-value crypto-asset services” to the country. The action was one of three financial measures the European Commission proposed alongside banning transactions and freezing assets connected to four Russian banks as well as a “prohibition on …
Regulation / April 8, 2022
Macron or Le Pen: What promise does each presidential candidate hold for crypto?
As France braces for the April 24 presidential election in a runoff, political pundits around the globe are making their bets. The choice is between the centrist incumbent Emmanuel Macron and right-wing populist Marine Le Pen. Much of the political debate this time revolves around economics, but there is one indispensable part of it that is largely absent from the candidates’ electoral agendas: digital assets. While both have a record of public statements on matters related to crypto, neither Macron nor Le Pen seems to be likely to trigger any significant policy change with regard to the French digital economy. …
Regulation / April 23, 2022