After some recent mishaps that shook the crypto space to its core, the EU wants to bring some much-needed positive regulation to the sector.
The European Union has been aiming to regulate the crypto space better, and pushing for a wider and global approach in the sector for quite some time now. In the last month, Mairead McGuinness, the European commissioner for financial services, has discussed in various meetings her ideas for crypto regulation, especially with regulatory bodies from the US.
The reasoning behind McGuinness’ drive for said global approach is primarily the protection of retail investors. Back in June, the EU agreed upon the Markets in Crypto-Assets (MiCA) regulation. This was meant to reduce consumer risks when it comes to investing in or trading crypto. These rules essentially state that if a provider were to lose an investor’s crypto holdings, they would be held responsible for the same without exceptions.
It’s to be noted that the regulation will be in effect only after about a year.
McGuiness highlighted that the firms in the crypto industry that are seeing the merits of a regulated global crypto space are “already acting in a way that our legislation is pointing”, and have thus also technically received the seal of approval from a regulatory body.
In light of some recent mishaps in the crypto space- including the collapse of a renowned crypto exchange, a global approach to the regulation of the sector does indeed bring many advantages, if done right.