EU official has said that the regulations on crypto being implemented by the EU have “no use”
Mairead McGuinness told CoinDesk that the collapse of FTX may have contributed to those wanting stronger crypto laws, but even the good people may get it wrong.
DAVOS, Switzerland — Unless the rest of the world follows suit, new European Union crypto regulations are worthless, the bloc’s top financial services official told CoinDesk on Thursday at the World Economic Forum.
European Commissioner Mairead McGuinness said that the turbulence in the crypto market has given those advocating for a worldwide standard further ammo, but emphasised that future crypto developments must be centred on people.
McGuinness told CoinDesk on the margins of the Davos summit, “It’s excellent that we can state that” the EU is the first significant jurisdiction in the world to regulate the industry with its Markets in Crypto Assets legislation.
McGuinness said, “If we fail to take a global strategy, we will discover that the number of issues increases. Technology transcends borders.”
Recommendations for the global financial system have already planted the seeds of a potential global crypto regulatory framework. Klaas Knot, the chairman of the board, said to an audience in Davos that he hopes to finalize difficult suggestions by summer.
MiCA, which is scheduled for official approval by the European Parliament in April, establishes reserve requirements for stablecoins — cryptocurrencies often tied to the U.S. dollar – as well as governance standards for crypto firms.
The danger is that MiCA could be undercut if exchanges or digital-wallet providers attempt to service EU clients from regulatory havens, which McGuinness alluded to as “sunny locations for shady individuals” – something fellow European regulator and chairman of the Financial Stability Board Klaas Knot had warned earlier during a panel on striking the appropriate balance for cryptocurrencies.