European Commission urges its members to agree on proposed crypto regulations

According to CoinDesk on November 12, according to a statement made by EU Financial Services Commissioner Mairead McGuinness on an online forum on Wednesday, the European Commission is urging its members to reach agreement on the proposed crypto asset market (MiCA) regulations this fall.

McGuinness said the committee also hopes to finalize its proposed distributed ledger technology (DLT)-based financial product regulatory sandbox before the end of the year. McGuinness said: “The rapid development of encrypted assets has enabled local companies to enter the market and also attract retail investors. It is our policy to formulate reasonable rules as soon as possible, and it is our responsibility as policy makers.”

The tight deadline highlights the urgent pace of EU regulators in developing a comprehensive regulatory framework for crypto assets. But there are traces of all this. As early as July, the European Union began to formulate new encryption regulations to ensure that all currency transactions are safe. In addition, the EU is also considering stopping all cryptocurrency transactions equal to or higher than 10,000 Euros. The European Commission explained in a statement: Given that virtual asset transfers and wire transfer funds transfer face similar money laundering and terrorist financing risks, it seems logical to use the same legislative instrument to solve these common problems. The EU is now seeking to ensure that all cryptocurrencies are traceable so that they can trace any parties involved in malicious or illegal activities

In addition, in October, the European Central Bank Management Committee Villeroy urged the European Union to quickly adopt the “Encrypted Currency Market Regulation” (MICA). Supervision should also be strengthened, because decentralized finance is making major developments. Innovation is of course positive, but if it is not regulated, innovation may reduce financial stability. At the same time, there are problems of market concentration and customer protection. Regulators should consider combining activities and entities for the operations of large technology companies in the financial services industry. It may be possible to organize specific legal entities within large technology companies to subject them to financial supervision.

However, according to a previous survey, most European citizens do not believe that the European Union (EU) will put forward effective cryptocurrency regulatory proposals. The survey conducted by Redfield & Wilton Strategies shows that these citizens have more confidence in local law proposals. Due to different attitudes towards cryptocurrencies, member states have so far adopted local practices. The survey was conducted in 12 states with more than 31,000 participants.

The survey also revealed that most citizens know little about cryptocurrencies. It is this lack of knowledge that citizens regard it as the main reason for not owning cryptocurrency. In addition, most citizens tend to issue local cryptocurrencies rather than the recently proposed digital euro. In addition, nearly 60% want their national governments to decide on financial regulation instead of relying on the European Union.

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