{"id":19595,"date":"2023-04-08T02:51:31","date_gmt":"2023-04-08T02:51:31","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ecb-board-member-warns-eus-new-crypto-rules-not-sufficient-regulation-bitcoin-news\/"},"modified":"2023-04-08T02:51:31","modified_gmt":"2023-04-08T02:51:31","slug":"ecb-board-member-warns-eus-new-crypto-rules-not-sufficient-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ecb-board-member-warns-eus-new-crypto-rules-not-sufficient-regulation-bitcoin-news\/","title":{"rendered":"ECB Board Member Warns EU’s New Crypto Rules Not Sufficient \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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A European Central Bank Supervisory Board member has warned that the crypto rules in the EU\u2019s Markets in Crypto-Assets (MiCA) bill \u201cwill not be sufficient on their own.\u201d While emphasizing that \u201cMiCA will set out important safeguards to prevent incidents similar to the FTX case from occurring,\u201d she cautioned: \u201cCertain areas still need further strengthening.\u201d<\/strong><\/p>\n

ECB\u2019s McCaul Warns of EU\u2019s Inadequate Crypto Regulation<\/h2>\n

Elizabeth McCaul, a member of the European Central Bank Supervisory Board, discussed cryptocurrency regulation in a blog post published by the ECB Wednesday.<\/p>\n

She explained that the regulations proposed by the European Union for crypto assets are insufficient and must be strengthened to effectively address crypto risks. The European Parliament is set to vote on the Markets in Crypto-Assets (MiCA) bill later this month. McCaul opined:<\/p>\n

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While the new Basel standard and MiCA are important milestones, I am afraid they will not be sufficient on their own.<\/p>\n<\/blockquote>\n

The ECB board member stressed that significant crypto asset service providers (CASPs) \u201cshould be subject to both stricter requirements and enhanced supervision,\u201d emphasizing that \u201cneither of the two is catered for by MiCA.\u201d<\/p>\n

While noting that \u201cMiCA will set out important safeguards to prevent incidents similar to the FTX case from occurring, like strong governance principles like the segregation of customer funds and requirements for external audits,\u201d she warned:<\/p>\n

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Certain areas still need further strengthening.<\/p>\n<\/blockquote>\n

McCaul raised concerns about how the size of crypto-asset service providers is measured. She pointed out that the collapsed crypto exchange FTX \u201cwould not have been classified as a significant CASP under MiCA because it did not reach the threshold of 15 million active users.\u201d She continued:<\/p>\n

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In fact, Binance, which is the largest crypto player, is alleged to have between 28 million and 29 million active users worldwide, but would probably not even meet the threshold to be classified as significant in the EU.<\/p>\n<\/blockquote>\n

The ECB board member also highlighted the necessity of developing new quantitative metrics for different types of businesses, such as trading volume for trading platforms or assets under custody for custodian businesses.<\/p>\n

Noting that \u201cMiCA applies only at the individual entity level,\u201d she suggested that thresholds be evaluated at the group level rather than the individual entity level due to the complexity of operations. Additionally, she said conflicts of interest must be identified not only within the group but also among affiliated entities.<\/p>\n

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ECB<\/a>, ECB crypto regulation<\/a>, ECB crypto rules<\/a>, ECB cryptocurrency regulation<\/a>, Elizabeth McCaul<\/a>, Elizabeth McCaul bitcoin<\/a>, Elizabeth McCaul crypto<\/a>, Elizabeth McCaul cryptocurrency<\/a>, European Central Bank<\/a>, European Central Bank crypto<\/a>, European Central Bank cryptocurrency<\/a>, MiCA<\/a>, MiCA crypto<\/a>, MiCA cryptocurrency<\/a><\/div>\n<\/div>\n

What do you think about the ECB board member stating that the EU\u2019s crypto rules are inadequate? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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