this European Central Bank (ECB) appealed to the US this Thursday. European Union accelerating and expanding regulations crypto assets. President Christine Lagarde made a call. “quick application” Cryptoactive Market Regulations (known as Mica), a leading standard which, for the first time in the world, will regulate the activity of a large part of issuers and service providers in this sector in the EU. is running late. He also advocated the arrangement “can and should be improved” in other aspects not covered by that European standard.
In his speech at the annual conference of the European Systemic Risk Board (ESRB), Lagarde specifically slow enactment From MiCA: “App a few monthshowever A few yearsunfortunately”. Thus, the regulation that started to be discussed in 2015 September 2020It was definitively approved a few weeks ago following the agreement between the European Commission, the European Parliament and the European Council, but adaptation time will delay its effective implementation.
Lagarde, “crypto assets extremely volatile and available significant risks for consumers”. In this sense, he reminded that the price is also high. Bitcoin is down almost 75% From its maximum reached in November 2021 and more recently “Chaotic and complete collapse” from FTX, a crypto asset exchange platform that was once valued at $32 billion. “While the impact of such episodes has been contained by now, systemic risk can easily arise from growth intermediate links between the crypto ecosystem and the world traditional financial system‘, he warned.
That’s why Lagarde insisted that rapid implementation of MiCA is “key”. closing editing loopholes‘, but also argued that ‘it could be just one thing’. first stepIn this sense, he called for financial regulation to address the “risk of mutual relations.” risks of financial institutions to crypto assets”, clarify the handling of cryptocurrency activities credit and betting (buying and locking crypto assets for profit or reward) and stay informed decentralized financial market. At the very least: “I’m sure there will be more (numbers) to come in the coming weeks and months.”
The chairman of the supervisory board also made a call. European legislators improving the regulation non-bank financial institutions (As mutual funds)In 2009, it increased from 15% of the financing received by companies to 25%. Specifically, he urged them to improve the regulation of money market funds. liquidity problems those suffering in the UK during the covid epidemic or more recently. “Fast legislative action on this front is vital to getting nonbanks to help. build capacity our financial system withstand blows“He caught it.
Lagarde also noted that the reforms approved since the previous crisis banks at the moment more strong more than in the past, but cautioned that “there is no reason”. smugness“. In this line, he demanded that they do what is necessary. “adequate provisions” to face losses in asset value. “prudent capital planning”“attentive” to credit risk and possible failures of internal risk measurement models.