EU commissioner calls for global coordination on crypto regulation


Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union at the European Commission, is calling on global regulators to work together to address potential risks in the crypto market.

In a Sunday opinion piece in the political outlet The Hill, McGuinness saying the European Union and the United States could help lead the world in a regulatory approach to cryptocurrencies that considers the benefits of innovative technology while addressing “significant risks.” The EU commissioner noted the volatility of certain assets, the risk of insider trading, the possibility of Russia using cryptocurrencies to evade sanctions, and environmental concerns.

“For the rules on crypto to be fully effective, crypto requires global coordination and joint international principles,” McGuinness said, adding:

“A global agreement on crypto should first enshrine that no product is left unregulated. Second, supervisors must collect and share information globally. Third, any deal must protect retail investors. Fourth, the crypto ecosystem must fully integrate environmental considerations.”

According to the EU commissioner, European regulators had already made progress in providing a comprehensive framework on crypto with the Markets in crypto assets, or MiCA, proposed, which essentially standardizes all the rules for crypto service providers within the European Union. She also said the executive order signed by President Joe Biden in March “charts the path for regulation of crypto assets in the US.” by establishing a framework for government agencies to handle crypto-related policies and enforcement actions.

“We have no time to waste in managing this transformation for the benefit of investors, businesses and society at large,” McGuinness said.

Related: ‘Green Light’: The EU’s Approach To Balancing Green Crypto Securities With Regulatory Relevance

In addition to its work on MiCA, the European Commission called financial services specialists to weigh the possible deployment of a digital euro. The European Central Bank has already started experimental prototype of a digital euro client interface as of April 29. McGuinness said the EU commission would be “ready” to introduce legislation behind a central bank digital currency.