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Mairead McGuinness, Commissioner of Financial Services, Financial Stability and the Capital Markets Union at the European Commission, is moving forward with a discussion on regulating cryptocurrencies in the context of three major events.
In a speech in Brussels on Tuesday, McGuinness said celsius network's recent suspension of withdrawals, as well as the collapse of Terra (originally LUNA, now LUNA Classic, or LUNC), showed the need for regulation of crypto assets in the European Union. She added that ongoing concerns about cryptocurrencies potentially being used to circumvent sanctions against Russia are also a factor.
"Regulating all crypto assets – whether they are unsupported crypto assets or stablecoins – and crypto asset service providers are necessary," McGuinness said. "The implementation of sanctions can be facilitated if our framework on cryptocurrencies is adopted and if all cryptocurrency asset service providers are regulated entities and subject to effective scrutiny in the European Union."
The EU commissioner added that she intends to discuss a "political compromise" under the French government through the cryptocurrency asset market, or MiCA. The proposal is currently being considered by the European Parliament, the European Commission and the Council of Europe:
"MiCA's rules will be the right tool to address concerns about consumer protection, market integrity and financial stability. This is very urgent given the recent developments."
#EU2022FR | Today, #trilogue on the regulation on Markets in crypto-assets #MiCA https://t.co/cvyS8Xh9vZ
— La France dans l’UE 🇫🇷🇪🇺 (@RPFranceUE) June 14, 2022
Under MiCA's draft proposal, all cryptocurrency companies offering services within the European Union will likely be subject to the same rules. Initially, the measure was canceled due to concerns about a potential ban on proof-of-work cryptocurrencies but was removed from the commission in March.
In addition to its work regulating digital assets within the EU, the commission will conclude a consultation launched in April for financial services experts to weigh in on the central bank's possible deployment of a digital currency. McGuinness said in May the EU commission would be "ready" to introduce the legislation behind the digital euro.
