EU Commissioner Reaffirms Need to "Regulate All Crypto Assets"

Amid three major events in the cryptocurrency space, European Commissioner for Financial Services, Financial Stability and Capital Markets Union Commissioner Mairead McGuinness is advancing discussions on regulating cryptocurrencies.

In a speech in Brussels on Tuesday, McGuinness said the recent suspension of withdrawals by Celsius Network and the debacle of Terra (formerly LUNA, now LUNA Classic) showed the need for regulation of crypto assets in the European Union. Ongoing concerns that cryptocurrencies could be used to circumvent sanctions against Russia were also a factor, she added.

McGuinness said: "Regulation of all cryptoassets -- whether unbacked cryptoassets or so-called 'stablecoins' -- is necessary, as well as cryptoasset service providers. If our crypto framework is in place, if all cryptoasset service providers Being a regulated entity and being effectively regulated by the EU will facilitate the enforcement of the sanctions.”

The EU commissioner added that she plans to discuss a “political compromise” through the Marketplace in Cryptoassets (MiCA) proposal currently under consideration by the European Parliament, European Commission and European Council:

"The MiCA rules will be the right tool to address issues of consumer protection, market integrity and financial stability. Given recent developments, this is a matter of great urgency."

According to the draft MiCA, all crypto companies offering services within the EU are likely to be subject to the same rules. The measure was initially delayed due to concerns that proof-of-work cryptocurrencies could be banned, but was withdrawn from the committee’s consideration in March.

In addition to its work on regulating digital assets within the EU, the commission will conclude on Thursday a consultation launched in April to give financial services experts their views on the potential launch of a central bank digital currency. McGuinness said in May that the European Commission would "stand ready" to introduce legislation supporting a digital euro.