Europe seeks to ‘harmonise’ cryptocurrency rules in Member States

In July, regulators from 19 EU member states will attend a supervisory board meeting to discuss the MiCA and its possible implementation


• The European Central Bank, or ECB, is preparing to introduce a new law regarding the need to "harmonize" cryptocurrency regulations in European Union member states.

According to the Financial Times on Sunday, the ECB fears a possible regulatory overlap between EU central banks and cryptocurrency companies, as officials prepare to implement the framework for the Markets in Crypto-Assets Act, or MiCA. On June 30, the European Parliament, the European Commission and the European Council reached an agreement that envisages bringing together issuers and service providers of cryptocurrencies under the control of their respective jurisdictions, in a single regulatory framework.

In July, regulators from 19 EU Member States will attend a supervisory board meeting to discuss the MiCA and its possible implementation. Once enforced, the law will require crypto-asset service providers to adhere to certain requirements aimed at protecting users, as well as to warn clients of the potential risk of investing in a volatile market such as cryptocurrencies. EU officials will also have an 18-month review period to assess the proposed regulatory framework and determine whether to include other crypto products, such as non-fungible tokens (NFTs).

"It's very challenging," a national regulator reported. "With the MiCA 18 months later, it would be better to say: 'as long as it is not there, do what you want, there is no regulation'. Or would it be better to learn how to manage it right away?"

"The ECB warns Eurozone countries about regulating cryptocurrencies."

Prior to the approval of the MiCA, financial regulators in individual European Union member states mostly had to manage cryptocurrency regulation within their own borders — though officials recently reached an agreement on setting up an authority to oversee the anti-money laundering rules of cryptocurrency companies.

In Germany, the Federal Financial Supervisory Authority, or BaFin, is responsible for licensing cryptocurrency companies interested in offering services in the country.

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