EU Publishes New Cryptocurrency RulesBy Emilio Aristegui | Wed, 03/16/2022 - 10:37
The EU continues to pursue a uniform legal framework for crypto-assets, as its Economic and Monetary Affairs Committee has agreed on vital draft rules for supervision to enhance security regarding cryptocurrencies.
The new rules on crypto-assets aim to boost user confidence and further develop digital services and alternative payment instruments. “Consumers would be better informed about risks, costs and charges. In addition, the legal framework supports market integrity and financial stability by regulating public offers of crypto-assets. Finally, the agreed text includes measures against market manipulation and to prevent money laundering, terrorist financing and other criminal activities,” explained the European Parliament Committee via a press release.
Sustainable activities have also been deemed a priority, with crypto-asset mining included in the EU taxonomy for 2025 to reduce its carbon footprint. Cryptocurrency mining and operations consume a large amount of energy, forcing the EU to adopt measures to reduce its high carbon footprint.
EU members aim for the European Securities and Markets Authority (ESMA) to oversee the issuance of asset-referenced tokens, while the European Banking Authority will focus on supervising electronic money tokens.
“By adopting the Market in Crypto-Assets (MiCA) report, the European Parliament has paved the way for an innovation-friendly crypto-regulation that can set standards worldwide. The regulation being created is pioneering in terms of innovation, consumer protection, legal certainty and the establishment of reliable supervisory structures in the field of crypto-assets. Many countries around the world will now take a close look at MiCA,” said Stefan Berger, Lead Member of the European Parliament.
The US’s Securities and Exchange Commission had warned on the complexities of cryptocurrency trading last year. “Bitcoin and bitcoin futures are relatively new investments. They are subject to unique and substantial risks, and historically have been subject to significant price volatility,” as reported by MBN. The US continues to evaluate sustainability risks as well to protect consumers.
In Mexico, while Banxico was initially reluctant to adopt cryptocurrencies due to the lack of certainty surrounding them, it recently announced that it would seek to implement these adequately throughout the country. “The Bank of Mexico (Banxico) reports that by 2024 it will have its own digital currency in circulation, considering these new technologies and the next-generation payment infrastructure are extremely important as options of great value to advance financial inclusion in the country,” reads a Tweet by the Mexican federal government, as reported by MBN.