EU and America FastTrack Crypto Regulation Due To Russia – Bear Market Inevitable
The Russia-Ukraine crisis has accelerated crypto regulation in Europe and the United States.
Since the United States and Europe imposed economic sanctions against Russia. Authorities have expressed concern that crypto could be used to circumvent them.
The United States is concerned about Russian individuals and groups who might utilize cryptocurrencies to circumvent international sanctions. This appears to have heightened the importance of the executive order regulating bitcoin. President Biden is expected to sign an executive order this week that directs federal agencies to investigate the risks and opportunities associated with digital currency.
“The long-awaited Biden executive order on cryptocurrencies — outlining the admin’s view of digital assets and directing a further study of economic, regulatory, and national security issues is finally expected to be signed by the president this week,” said Jennifer Epstein.
This timeline was also confirmed by Kayla Tausche who is the White House anchor at CNBC. She said “Biden administration will release its long-awaited crypto EO by mid-week, aiming to coordinate policy-making for digital assets among various agencies, expected to report back over the next 3-6 months, an admin official says”.
Furthermore, in a press release, Him Das, acting director of Treasury’s Financial Crimes Enforcement Network, said, “Although we have not seen widespread evasion of our sanctions using methods like cryptocurrency, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people.”
Next Monday, the European Union will vote on the Markets in Crypto Assets (MiCA), a significant crypto regulation
The highly criticized prohibition on proof-of-work tokens, on the other hand, will no longer be considered.
The Economic and Monetary Affairs Committee (ECON) will vote on the bill on March 14, according to Stefan Berger, a European MP.
He also urged that, like all other financial instruments in the EU, crypto-assets be recognized as investments and controlled by the taxonomy system. He also clarified the proof-of-work prohibition. MiCA has stated that it is no longer planned.
The bill was intended to be voted on by ECON on February 28. Berger, on the other hand, postponed the vote. Concerns over a potential restriction on proof-of-work tokens due to their high energy requirements were his motivations. With debates regarding MiCA, crypto’s massive energy footprint has become a focal point in the EU.
MiCA is part of the EU’s bigger digital finance agenda. In 2020, the piece of legislation was proposed, and the European Council approved it in 2021.Even if it receives a majority vote by March 14, when the vote is held, the European Council must still review it. As a result, we still have a long way to go before MiCA is widely adopted.
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