While crypto regulations have been a critical topic globally, recent revelations show the urgency of their implementation in Europe.
In a letter released by the European Union to a publishing house, Mairead McGuinness, commissioner of financial services of the E.U., wants to speed up a vote on crypto laws that has been postponed for a while, citing procedural reasons.
The letter signifies that the commission is getting restless about the consistent delays to its much-talked crypto-regulation bill. The bill is called Markets in Crypto Assets (MiCA), and following the FTX crisis, the urgency of its implementation has been highlighted.
McGuiness’s letter was addressed to Irene Tinagli, chairwoman of the European Parliament’s Economic and Monetary Affairs Committee, and Zbyněk Stanjura, finance minister of the Czech Republic and the chairman of E.U.’s council of Economy and Finance Ministers.
The commissioner, in her letter, expressed her opinions on having sufficient regulation of the crypto sector for client and investors’ protection and, in turn, the broader economy putting into light the recent happenings.
“Recent events have highlighted once again the importance of having adequate regulation of crypto markets.”
McGuiness also said that she wants the rules to come into effect by the spring of next year at the latest. She wants a rapid vote and subsequent vote on implementing the MiCA and the Transfer of Funds (TFR) regulations.
“I would ask you to do your utmost to ensure a rapid vote and subsequent publication of the MiCA and TFR (transfer of funds) regulations.”
The TFR is a similar law that aims to counter money laundering and calls for the verification of the identities of the beneficiaries by the crypto companies involved in making the transfers.
Earlier, a vote by the European Parliament on the legislation was scheduled to take place by the end of this month but has now been pushed to February. The postponement has primarily been done due to concerns about the text’s length and complexity, which requires it to be translated into 24 regional languages.
However, certain media agencies also expect the vote to be postponed till March though the legislation was, in principle, agreed upon last June. As per the commission’s official journal, it will take effect 12 to 18 months after publication.
McGuiness said that the two regulations to be voted on “set a clear signal to other jurisdictions worldwide,” considering that the countries like the United States and the United Kingdom have been contemplating their respective crypto laws.
E.U. officials have claimed that MiCA would have been able to stem alleged improprieties at FTX, as it includes rules against the misuse of customer funds. However, some officials seem skeptical about it.
McGuiness has also been in charge of recent initiatives to examine the potential for a coordinated strategy with U.S. officials and to share the E.U.’s experience with MiCA.
As reported by Todayq News, she asserted that the U.S. is very interested in Europe’s regulatory strategy. She also thinks that in the near future, the U.S. and Europe may cooperate on crypto regulations.