The European Central Bank (ECB) will reportedly prepare to implement a new law by warning EU member states of the need to harmonize cryptocurrency regulations.
According to a report by the Financial Times on Sunday, the European Central Bank worried Regarding possible regulatory overlap between EU central banks and crypto firms as officials prepare to implement the crypto asset market or MiCA framework.European Parliament, European Commission and European Council Agreed on June 30 Bringing cryptocurrency issuers and service providers under the jurisdiction of a single regulatory framework.
Regulators from 19 EU member states will reportedly attend a supervisory board meeting in July to discuss MiCA and its possible implementation. Once implemented, the law will require asset service providers to comply with certain requirements designed to protect investors and warn clients of the potential risks of investing in volatile crypto markets. EU officials will also have an 18-month review period to assess the proposed regulatory framework and determine whether it includes other crypto-related products such as non-fungible tokens or NFTs.
“It’s very challenging,” an unnamed national regulator reportedly said. “With MiCA still 18 months away, you’d better say, ‘Before it rolls out, do what you love, No regulation’, or are you better off trying to deal with it?”
ECB warns euro zone countries over cryptocurrency regulation https://t.co/e6rzizb4Lp
— Financial Times (@FT) July 4, 2022
Prior to the passage of the MiCA, financial regulators from various EU member states had largely had to deal with cryptocurrency regulation within their borders — although more recently officials Agreement on Forming Authority Anti-money laundering regulations used to oversee crypto companies.In Germany, the Federal Financial Supervisory Authority (BaFin) is responsible for issuing licenses to crypto companies interested in providing services domestic.