Christine Lagarde, the head of the European Central Bank (ECB), has once again reiterated the need to bring crypto under regulatory oversight in the European Union (EU) amid the collapse of cryptocurrency exchange FTX.
In a speech at a hearing of the Economic and Monetary Affairs Committee on Monday, Lagarde mentioned that the EU has already taken important steps towards limiting the harm caused by digital assets. She cited Facebook’s Libra as an example of the ECB’s involvement, saying it was “helpful in preventing certain players from engaging with the industry”.
She also noted that the EU has been partially successful in implementing regulations in crypto markets. Notably, the ECB has announced the Markets in Crypto Assets Bill (MiCA), which addresses key crypto elements such as consumer protection, anti-money laundering (AML), environmental impact and business accountability.
“At least Europe is ahead of the pack [in terms of regulation]Lagarde said. “But as I said before, this is a step in the right direction. It is not that – there would have to be a MiCA II, which comprehensively embraces what it aims to regulate and supervise, and is much needed.
The MiCA is currently making its way through the European Parliament and awaits final approval. As mentioned, the Economics Committee of the European Parliament passed the MiCA crypto regulation bill in October. Many expect the policy to go into effect by 2024.
EU first An agreement was reached on MiCA In July this year. Subsequently, crypto industry representatives such as Rebecca Rettig, a board member at crypto-friendly bank Silvergate, applauded the effort to “provide clarity in the crypto space,” while also noting that “more work remains to be done.” ,
Earlier this month, Stephan Berger, a member of the European Parliament economics committee, compared the collapse of FTX, which was once the world’s third largest crypto platform, with the collapse of “Lehman Brothers” and the 2008 financial crisis.
“The FTX/Alameda case has cost a great deal of trust. Such Lehman Brothers moments must be stopped in the crypto space. That’s what MiCA is for. Crypto assets are not money. Crypto asset service providers must ensure internal risk management mechanisms ,” They Told,
ftx announced that it had filed for Chapter 11 bankruptcy in Delaware, ending a desperate attempt to raise funds. The collapse of FTX has also sent crypto prices into free fall. Bitcoin has been trading around $16,000 for the past few weeks, which is its lowest level in two years.
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