EPRS Urges Tighter Non-EU Regulations for Cryptocurrency Market Stability
Summary:
The European Parliamentary Research Service (EPRS) emphasized the need for enhanced regulations from non-European Union (EU) regulators for global cryptocurrency market stability and growth. This comes as the Markets in Crypto-Assets Regulation (MiCA) Act is due for implementation by December 2024. The EPRS report also zeroed in on concerns related to financial stability and the mainstream use of stablecoins due to the EU's dependence on non-EU countries' policies. It further highlighted the complex regulatory landscape in the U.S. and the expected divergence in the crypto-assets identification between the EU and UK in coming years.
The European Parliamentary Research Service (EPRS) underscored the importance of stringent oversight from non-European Union (EU) regulators for the stability and growth of the global cryptocurrency market. As the implementation deadline for the Markets in Crypto-Assets Regulation (MiCA) Act comes closer - slated for December 2024, a report by the EPRS underscores the necessity for a stricter regulatory infrastructure in non-EU areas. The report - penned by Issam Hallak and Rasmus Salén from the Members' Research Service, expressed concerns about how the EU's economic system and autonomy remain at risk due to dependence on non-EU countries' policy changes, especially where MiCA is applicable. The report highlighted concerns over the implications on financial stability, decreased market attractiveness, and mainstream use of stablecoins.
The report indicates that the United States handles a complex system of regulations with a series of state and federal players, indirectly impacting legal transparency and regulatory surety. Other aspects explored by the report include the UK's Financial Services and Markets Act (FSMA) as well as a study done on behalf of the European Parliament. This study anticipates significant variations in the definition of crypto-assets between the EU and the UK in the coming years. On the 18th of September, The Malta Financial Services Authority (MFSA) started public discussions on suggested changes to its crypto regulations to better sync with the forthcoming MiCA regulations. As previously noted by Cointelegraph, the updated regulations suggest changes to rules regarding exchanges, custodians, and portfolio managers to be more in line with the MiCA regulations proposed by the EU.
Published At
9/22/2023 9:02:50 AM
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