European Central Bank (ECB) President Christine Lagarde has called crypto regulation and supervision a “critically imperative” for the EU. After the fall of FTX
In a hearing at the European Parliament’s Economic and Monetary Committee on Nov. 28, Lagarde cited Facebook’s Libra as an example of the ECB’s involvement, which was “helpful in stopping some players” from engaging with cryptocurrencies. Crypto companies, however, she said, the situation with FTX, which involves crypto assets instead of stablecoins, is about The “stability and credibility” of exchanges and the ECB need to become a global regulator to deal with people’s growing interest in digital assets.
The Bill Markets in Crypto Assets, or MiCA, is awaiting final approval following legal and language review by EU lawmakers. The European Parliament’s Economic Committee adopted the MiCA framework in October. After negotiations between the EU Council European Commission and the European Parliament Many expect the policy to take effect in 2024.
Lagarde Refers to MiCA II. This is likely to be an additional bill on work in June. At the time, the ECB president said that the framework “The staking and lending of crypto assets should be regulated, which is growing in popularity.”
Stefan Berger, Member of the European Parliament Economic Committee One of the supporters of the MiCA framework cited the collapse of FTX in support of crypto regulation on Nov. 9: “The case of FTX has made clear the dangers of crypto markets that have not been fully regulated. And we still have a lot of crypto asset providers who don’t understand the concept, MiCA solves this problem exactly. And if MiCA rules are applied globally, the problem of FTX will not arise.”
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