Elizabeth McCaul Wants Stricter Law To Increase Supervision Of Crypto Exchanges
Key Points:
- Elizabeth McCaul warned of gaps in the framework for regulating crypto markets and said that standard methods of financial market regulation might be ineffective.
- McCaul believes that current initiatives to regulate cryptocurrency, such as MiCA, would not entirely solve the issue of complicated multinational systems.
- She referenced financial antecedents, where combined organizations are supervised by colleges of worldwide regulators.
Elizabeth McCaul, a member of the European Central Bank’s supervisory board, stated in a blog post on Wednesday that major global crypto businesses like FTX and Binance require tighter laws and greater international regulatory collaboration.
The EU’s upcoming crypto asset legislation would enable some of the industry’s major companies, like exchange Binance, to avoid harsher oversight and will need to be reformed, McCaul said.
The European Parliament will vote on the Markets in Crypto-assets (MiCA) bill later this month, taking a significant step toward establishing control of the crypto industry after a series of scandals and collapses.
“We should assess both existing laws, such as the Markets in Financial Instruments Directive (MiFID), and future ones, such as MiCA. We must make sure that we acknowledge where gaps exist in regulatory or supervisory oversight, since these gaps can lead to bank failures,” McCaul said in the blog post.
She referenced financial antecedents, where combined organizations are supervised by colleges of worldwide regulators. She also said that, in the case of securities, authorities defer to foreign countries considered equal, but that cryptocurrency businesses would need to become more legally responsible.
Her remark adds to the rising regulatory pressure on Binance, which was hit with a lawsuit last month by the US Commodities Futures Trading Commission for unlawfully servicing American consumers. The CFTC also referenced internal Binance discussions as evidence that the platform promoted possibly unlawful conduct.
Mica said that she would tighten governance, client money segregation, and external audit standards but cautioned that some areas still need additional development.
To be deemed substantial under Mica and therefore overseen by the European Banking Authority in collaboration with the ECB, crypto asset service providers must have at least 15 million active users in Europe, a level McCaul predicted would be missed by Binance and FTX before their collapse. Lesser cryptocurrency providers will be regulated by national EU authorities.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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Elizabeth McCaul Wants Stricter Law To Increase Supervision Of Crypto Exchanges
Key Points:
- Elizabeth McCaul warned of gaps in the framework for regulating crypto markets and said that standard methods of financial market regulation might be ineffective.
- McCaul believes that current initiatives to regulate cryptocurrency, such as MiCA, would not entirely solve the issue of complicated multinational systems.
- She referenced financial antecedents, where combined organizations are supervised by colleges of worldwide regulators.
Elizabeth McCaul, a member of the European Central Bank’s supervisory board, stated in a blog post on Wednesday that major global crypto businesses like FTX and Binance require tighter laws and greater international regulatory collaboration.
The EU’s upcoming crypto asset legislation would enable some of the industry’s major companies, like exchange Binance, to avoid harsher oversight and will need to be reformed, McCaul said.
The European Parliament will vote on the Markets in Crypto-assets (MiCA) bill later this month, taking a significant step toward establishing control of the crypto industry after a series of scandals and collapses.
“We should assess both existing laws, such as the Markets in Financial Instruments Directive (MiFID), and future ones, such as MiCA. We must make sure that we acknowledge where gaps exist in regulatory or supervisory oversight, since these gaps can lead to bank failures,” McCaul said in the blog post.
She referenced financial antecedents, where combined organizations are supervised by colleges of worldwide regulators. She also said that, in the case of securities, authorities defer to foreign countries considered equal, but that cryptocurrency businesses would need to become more legally responsible.
Her remark adds to the rising regulatory pressure on Binance, which was hit with a lawsuit last month by the US Commodities Futures Trading Commission for unlawfully servicing American consumers. The CFTC also referenced internal Binance discussions as evidence that the platform promoted possibly unlawful conduct.
Mica said that she would tighten governance, client money segregation, and external audit standards but cautioned that some areas still need additional development.
To be deemed substantial under Mica and therefore overseen by the European Banking Authority in collaboration with the ECB, crypto asset service providers must have at least 15 million active users in Europe, a level McCaul predicted would be missed by Binance and FTX before their collapse. Lesser cryptocurrency providers will be regulated by national EU authorities.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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