European Commission Commissioner for Financial Services, Financial Stability and Capital Markets Union Mairid McGuinness calls on regulators from around the world to work together to address potential risks in the cryptocurrency market.
McGuinness said the European Union and the United States can help the world with an approach to cryptocurrency regulation that takes into account the benefits of innovative technology while eliminating “significant risks.
In addition, the EU commissioner pointed to the volatility of certain assets, the risk of insider trading, the possibility of cryptocurrency being used to evade sanctions (by Russia) and environmental concerns.
A global agreement on cryptocurrencies should first of all enshrine that no product will remain unregulated. Second, supervisors should collect and share information worldwide.
Third, any agreement must protect retail investors. Fourth, the crypto-ecosystem must take full account of environmental considerations.
According to the EU commissioner, European regulators have already moved forward in providing a comprehensive framework for cryptocurrencies with the Crypto Asset Markets Initiative, or MiCA, which standardizes all rules for crypto service providers in the European Union.
The official also said the executive order, signed by President Joe Biden in March, “charts the way for crypto-asset regulation in the U.S.,” establishing a framework for government agencies to manage policies and enforcement actions related to cryptocurrency.
In addition to its work, the European Commission has called on financial services professionals to weigh in on the potential adoption of the digital euro. The European Central Bank has already begun creating an experimental user interface for the digital euro.