Mairead McGuinness, the European Commission’s commissioner for financial services, financial stability, and capital markets union, has called on global authorities to work to address possible concerns in the cryptocurrency sector.
McGuinness stated in a Sunday opinion piece for the political news site The Hill that the European Union and the United States could help lead the world in a regulatory approach for cryptocurrencies that takes into account the benefits of the innovative technology while addressing “significant risks.” The EU commissioner highlighted the volatility of particular assets, the risk of insider trading, the possibility of Russia using cryptocurrency to evade sanctions, and environmental concerns.
According to the EU commissioner, European authorities have already gone ahead with the Markets in Crypto Assets, or MiCA, proposal, which effectively standardises all laws for crypto service providers across the European Union. She also said that President Joe Biden’s March executive order “charts the way for US regulation of crypto-assets” by establishing a framework for government entities to manage crypto-related policies and enforcement actions.
“We don’t have time to waste managing this transformation for the benefit of investors, companies, and society as a whole,” McGuinness added.
In addition to its work on MiCA, the European Commission requested input from financial services experts on the future introduction of a digital euro. As of April 29, the European Central Bank has already begun experimental development of a digital euro consumer interface. McGuinness said that the EU commission will “stand ready” to introduce a bill in support of a central bank digital currency.
