Supervisors from 19 EU countries to meet in July to discuss MiCa implementation.
A meeting of the supervisors from 19 EU countries is scheduled for July to consider MiCa and work on its implementation.
The ECB will reportedly be implementing a new law by warning EU member states about the need to harmonize regulations for crypto.
The Financial Times reported that the ECB was worried about possible overlapping regulations between EU central banks and crypto companies as officials prepared to implement the Markets in Crypto-Assets, or MiCA, framework. The European Parliament, European Commission, and European Council agreed on June 30 to bring crypto issuers and service providers under a single regulatory framework.
In July, regulators from 19 EU member states will reportedly attend a supervisory board meeting to discuss MiCA and its possible implementation. Once implemented, the law will require asset service providers to follow certain requirements aimed at protecting investors as well as caution clients about the risk of investing in a volatile cryptocurrency market. EU officials will also have an 18-month review period to assess the proposed regulatory framework and determine whether it covers other crypto-related products like nonfungible tokens, or NFTs.
"It's very challenging," reportedly said an unnamed national regulator. "With MiCA 18 months away, do we say, 'until it's in, do what you like; there is no regulation,' or should we try to get a handle on it?"
ECB to warn eurozone countries over crypto regulation https://t.co/e6rzizb4Lp— Financial Times (@FT) July 4, 2022
Prior to the passage of MiCA, financial regulators in individual European Union member states had to deal with crypto regulation on their own - but officials recently agreed on forming an authority for supervising anti-money laundering regulations for crypto firms. In Germany, the Federal Financial Supervisory Authority, or BaFin, is responsible for issuing licenses to crypto firms that want to operate within the country.