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To establish a strong international strategy that safeguards consumers and financial stability, the rest of the world should imitate European Union regulations for cryptoassets, the EU's financial services chief said on Wednesday.
The world's first complete set of regulations for the previously unregulated industry, the EU's markets in cryptoassets legislation (MiCA), is scheduled to receive final approval from the European Parliament on Thursday. EU member states have already approved.
The fall of crypto exchange FTX and other failures rattled the cryptocurrency industry, sending the benchmark price of bitcoin plummeting, albeit it has started to rebound.
EU financial services commissioner Mairead McGuinness expressed her desire to the parliament that their regulations would serve as a model for other countries.
To serve customers in the EU, crypto companies must be authorized by the EU and adhere to MiCA's anti-money laundering and anti-terrorist financing regulations.
To give the industry time to adapt, it will begin to be implemented in stages in July 2024.
Crypto companies that have been authorized in one EU member state are permitted to provide their services in all 27. Cities in the EU, including Paris, are already courting businesses in the industry.
"It marks the end of the Wild West era for cryptoassets," Green Party politician Ernest Urtasun declared in front of the legislature.
However, other countries must contribute by enacting strict regulations as well, according to McGuinness, whose authorities created MiCA. "Global convergence is absolutely key."
Recently, Britain released a proposed set of regulations governing cryptoassets.
McGuinness stated that the panel will investigate if further regulations for decentralized finance as well as lending and borrowing in cryptocurrency are necessary.
"We believe had FTX been captured under the EU’s jurisdiction, many of its practices would not have been permissible under MiCA," she continued.
By fLEXI tEAM