By Alicia Maher
The global crypto industry is operating under escalating volatility due to a lack of properly defined regulations. The European Union’s Financial Services Head has called on the US to finalize policies. This comes in the midst of wider calls for well-defined crypto regulations.
The EU’s Corporative Move
According to a recent report, the Head of the EU’s financial service, Mairead McGuinness, warned over crypto assets. McGuinness issued the warning while she cited a threat to the EU’s financial stability. She stated that any crypto laws for the market would have to have a global scope.
McGuinness said the EU needs to see other countries. These have to be countries that are equally committed to implementing crypto regulations. Nevertheless, there are many regulators trying to meet up with the EU’s crypto regulation implementation.
Furthermore, she stated that there are many various players with the same goals. The released report indicated that McGuinness met politicians in the US. She had a conversation there on the best way to regulate the crypto sector.
The EU commissioner believes policymakers in the US are on the same page with the EU on the matter. But policymakers in Europe are more focused on the market and regulations.
Whereas, regulators in the US look divided over the need for definite crypto laws. Reports indicate that the SEC commissioner, Hester Peirce, issued some criticisms. She called out regulators for making NFT creators and traders unaware of some laws.
US Regulators Fired
Peirce, however, noted that there are some NFTs that might be regulated differently. She said they might come under the same regulations as stocks and bonds in the market.
Crypto regulation has been a wide topic on the global scene. Only a few countries and cities have cracked the code on integrating crypto with laws. Dubai and Singapore top the list.
This has created a situation where some places are considered crypto havens ahead of others. The European Union has, however, been on track with its Market in Crypto Assets (MiCA) law. It has been provisionally approved by the EU Parliament on the 30th of June.
The MiCA’s goal is to protect crypto investors and maintain financial stability. It would also make room for more innovation to take place in the crypto industry.
Seeking a global perspective on any local crypto regulation would be in the overall interest of the industry. Crypto would, therefore, be on the right trajectory to wider adoption among other benefits.