According to a commissioner in the E.U., the United States and the European Union are both forging ahead on complete frameworks for cryptocurrency, as seen by President Biden’s order and the famous MiCA plan. The commissioner has called for the joint effort of various regulatory bodies to help curb the incidence of fraud and protect investors’ rights in the crypto market.
Worldwide Collaboration Needed In Crypto Sector
Mairead McGuinness, the E.U.’s commissioner in charge of financial stability, services, and capital markets, has called on global authorities to collaborate in order to address possible concerns in the cryptocurrency sector.
McGuinness wrote a piece for The Hill, the political news media, in which he suggested that the E.U. and the U.S. could set an example for the rest of the world by developing a cryptocurrency regulatory framework that takes into account the potential of the digital technology while also addressing “possible risks.”
For example, the finance commissioner cited the volatility of particular assets, the danger of insider trading on exchange firms, the chance that Russians may use cryptocurrency to escape sanctions, and environmental considerations.
“In order for crypto rules to be completely successful, worldwide coordination and shared international principles are required. Crypto rules need global coordination and shared international standards, “McGuinness stated.
“Before everything else, a worldwide deal on cryptocurrency should stipulate that no product stays uncontrolled. Second, regulators should gather and share information with colleagues all around the world. Thirdly, all agreements must provide protection for small- and medium-sized businesses. Fourth, environmental factors should be completely integrated into the cryptocurrency ecosystem.”
MICA And Biden’s Executive Order
According to the E.U. commissioner, a complete framework for cryptocurrency has already been established with the MiCA proposal. This proposal effectively standardizes all standards for cryptocurrency service providers across the E.U.
According to him, President Biden’s E.O. on cryptocurrency assets, issued in March, “lays the groundwork for future regulation of digital assets in the U.S.” by establishing a framework for federal entities to manage policies related to crypto and legal actions.
According to McGuinness, “there is no time to waste in managing this shift for the interest of companies, investors and society as a whole.” In addition to the international organization’s work on the MiCA bill, the E.C. (European Commission) has requested input from financial services experts on the possible future implementation of a virtual Euro.
As of the 29th of April, the ECB (European Central Bank) has started experimental prototyping to establish and test a virtual Euro user interface, which will be available in the near future. He said that the E.C. would “stand ready” to adopt legislation in support of a CBDC released in the future.