EU says that no crypto-asset can be considered completely safe
The Chairwoman of the European Union’s regulatory body, Verena Ross, has emphasized that cryptocurrencies are inherently risky and should not be considered as safe assets. She cautioned consumers against viewing cryptocurrencies as a reliable form of investment.
Ross stated that entities involved in crypto-asset activities need to understand that the EU does not serve as a jurisdiction for forum-shopping, indicating that regulatory oversight should not be evaded by seeking more lenient jurisdictions.
She further emphasized that even with the implementation of the Markets in Crypto-Assets Regulation (MiCA), which sets regulatory standards for crypto-assets, the concept of a completely safe crypto-asset does not exist.
The European Union is currently seeking input from the crypto industry on the technical standards and requirements of the MiCA regulatory framework. The consultation period will last until September 20, and the agency is requesting confidential information about expected revenue from crypto companies.
The regulator cited recent instances of collapses and misappropriation of funds in the crypto world, as well as reported hack attacks resulting in the theft of client assets, as reasons for caution.
MiCA is set to take effect in 2024 and aims to provide a unified regulatory framework for wallet providers and exchanges operating across the 27-nation bloc, allowing them to operate with a single license.
She further emphasized that even with the implementation of the Markets in Crypto-Assets Regulation (MiCA), which sets regulatory standards for crypto-assets, the concept of a completely safe crypto-asset does not exist.
The European Union is currently seeking input from the crypto industry on the technical standards and requirements of the MiCA regulatory framework. The consultation period will last until September 20, and the agency is requesting confidential information about expected revenue from crypto companies.
The regulator cited recent instances of collapses and misappropriation of funds in the crypto world, as well as reported hack attacks resulting in the theft of client assets, as reasons for caution.
MiCA is set to take effect in 2024 and aims to provide a unified regulatory framework for wallet providers and exchanges operating across the 27-nation bloc, allowing them to operate with a single license.
