Cryptocurrencies and related digital assets may put financial stability at risk if their growth is left unchecked, says Mairead McGuinness, the EU commissioner for financial services, financial stability, and Capital Markets Union.
In today's interview for the "Financial Times", the politician urged US lawmakers to introduce proper regulations for the crypto industry. She also stressed that the rules should be applied globally to be effective.
"We do need to see other players also legislating, perhaps differently, but with the same objective (...) We need to look at global regulation of crypto", she said, implying that other countries should follow the EU's lead on regulating the crypto market.
McGuinness expressed her concerns during her trip to Washington, DC, where she has been meeting politicians amid negotiations over the new rules governing the crypto industry. She forewarned that neglecting the issue may result in "financial stability problems."
On October 5, the European Council finally approved the Markets in Crypto-assets regulation ("MiCA") considered as one of the most comprehensive of its kind. MiCA is due to be ratified in Q1 2023 and will enter into force 20 days later. Most regulations will start to apply 12-18 months from then. However, they will offer considerable grace periods for the affected companies to catch up with the requirements.
Once it comes into effect, the MiCA will become the first pan-national regulatory framework for crypto asset issuers and service providers.