ECB officials prepare for ‘harmonization’ of crypto regulations: Report

The European Central Bank (ECB) is reportedly preparing to implement a new law by warning European Union member states about the need to harmonize cryptographic regulations.

According to a Sunday report from the Financial Times, the ECB Concerned Regarding the possibility of overlapping regulations between EU central banks and crypto companies as authorities prepare to implement the market in the Cryptocurrency (MiCA) framework. The European Parliament, the European Commission, and the European Council reached an agreement on 30 June to place cryptographic issuers and service providers within their jurisdiction under a single regulatory framework.

Regulators in 19 EU member states are reportedly scheduled to attend the Audit & Supervisory Board meeting in July to discuss the feasibility of implementing it with MiCA. When the law comes into force, asset service providers must comply with specific requirements aimed at protecting investors and alert clients to the potential risks of investing in volatile crypto markets. .. EU authorities also have an 18-month review period to evaluate the proposed regulatory framework and determine if it contains other crypto-related products such as non-fungible tokens and NFTs.

“It’s very challenging,” said an unnamed state regulator. “Since MiCA is 18 months away, should I say,’Do whatever you want until it comes in. There are no restrictions’, or should you try to handle it well? “

ECB warns eurozone countries about cryptographic regulations https://t.co/e6rzizb4Lp

Financial Times (@FT) July 4, 2022

Related: Integration and Centralization: How New European AML Regulations Affect Cryptography

Prior to the passage of MiCA, the financial regulators of individual European Union member states had to deal with cryptographic regulations primarily within their own borders, but authorities have recently introduced anti-money laundering regulations for crypto firms. An agreement has been reached to form the authority to oversee. In Germany, the Federal Financial Supervisory Authority (BaFin) is responsible for issuing licenses to cryptocurrency companies interested in providing services domestically.