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European Central Bank (ECB) Issues Warning Over Crypto Regulation

Written by: Qadir AK

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Jul 5, 2022

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According to the reports, the European Central Bank (ECB) will alert the European Union members about the necessity of harmonizing regulations for crypto as it gets ready to introduce a new law.

A report on Sunday by Financial Times stated that ECB was concerned about the possible overlap of regulations between the central banks in the EU and crypto companies, as they look forward to implementing the Markets in Crypto-Assets (MiCA) framework. 

MiCA provides definitions for digital assets, stablecoins, and other crypto assets, giving legal clarity about crypto and other assets. The European Parliament, European Commission, and European Council reached an agreement on June 30 that will bring crypto issuers and service providers within the purview of MiCA regulation.

Under this, the companies that issue stablecoins, or asset-referenced tokens (ARTs) will need to have a registered office in the EU to market their product. 

The regulators from 19 EU member countries will be attending a supervisory board meeting in July to discuss the regulation and its possible implementation. After implementation, it requires the asset service providers to comply with certain requirements that aim to protect the interest of investors and warn clients of the potential risk of the volatile crypto market.

One national regulator was quoted by Financial Times saying :

“It’s very challenging. With MiCA 18 months away, are you better to say, ‘until it’s in do what you like, there’s no regulation’ or are you better to try to get a handle on it?” 

The 18 months will be a review period by EU officials to assess the proposed regulation and to determine whether it will include other crypto-related products such as Non-fungible tokens (NFTs) or not. 

The Finance Minister of France, Bruno Le Maire, who chaired the intergovernmental talks on MiCA for the past six months argued that the regulation “will put an end to the crypto wild west” and affirmed that the EU will set a standard for digital topics.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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