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- Crypto regulations being urged by the European Commission
- EU commissioner for Financial services believes that it is their duty as policy makers to put sound rules in the cryptosphere as soon as possible
- The proposed framework will foster innovation and help crypto-related businesses to expand across the region
- There still are few questions that concerns the MiCA regulations
Crypto regulations are getting much more robust amid the industry gaining mainstream attention. Recently, the European Commission, the executive branch that introduces laws for the European Union, is hoping to finalize its proposed regulatory sandbox for cryptocurrency. According to the recent statement released by Mairead McGuinness, the EU commissioner for Financial services, the authority is found urging its members to agree on its proposed Markets in Crypto Assets (MiCA) regulations, to finalize it by the end of this year.
Finalization of MiCA regulation
On Wednesday, McGuinness underscored during a web forum that the European Commission is hoping to finalize its proposed crypto regulations. According to the EU commissioner for Financial services, digital currencies are evolving with a tremendous pace, enabling homegrown firms to enter in the ecosystem. Moreover, the industry is also attracting several retail investors with notable gains. Hence, McGuinness believes that it is their duty as policy makers to put sound rules in the cryptosphere as soon as possible.
Crypto regulations will expand businesses
In introducing a swinging regulatory framework for digital currency, EU regulators are moving with greater pace than their US counterparts. Notably, last week the United States financial regulators released their first recommendations to regulate the fiat-pegged crypto coins. Following the scenario, McGuinness. cited that the MiCA crypto regulations are introducing a bespoke regime for priorly unregulated virtual currency that also includes stablecoins.
Several critics in the cryptosphere concerned whether the crypto regulations will hyper-focus on fiat-pegged assets issuers. If so, the critics claimed that such regulations may drive innovations from the region. However, according to McGuinness the proposed framework will foster innovation and help crypto-related businesses to expand across the region. Notably, the regulators will bring a licensing system that will allow the start-ups to get regulated in one member state to start operating across the continent.
Still there are open questions concerning MiCA
According to Eva Maydell, a member of the European Parliament, there are few questions that concern MiCA regulations. Although the EU Commission supports the interests of the nation as a whole, the parliament directly represents the citizens of the union. Observing the scenario, Maydell cautioned that crypto regulations might take longer than planned to finalize a position in the framework. Indeed, Maydell has also explained that they don’t want any business in the cryptosphere.
