Governor Villeroy de Galhau, the esteemed leader of the Bank of France, has underscored the critical importance of international cooperation like MiCA 2 in the regulation of crypto conglomerates. His remarks, delivered during a tech forum in Paris, shed light on the imperative need for collaborative efforts among nations to effectively address the challenges posed by these conglomerates.
In light of this, Villeroy further put forth the notion of revisiting the recently adopted crypto legislation within the European Union. While emphasizing the potential necessity for comprehensive measures aimed at tackling this multifaceted issue.
Bank of #France Governor #Villeroy calls for regulating #crypto #conglomerates internationally. https://t.co/iuG84MN8GU
— Bitcoin News (@BTCTN) June 19, 2023
Insufficient Regulation – Is MiCA 2 A Solution?
Villeroy pointed out the insufficiency of solely regulating individual entities within a single jurisdiction.
He drew attention to the practices of U.S. crypto companies that operate through distinct legal entities across multiple jurisdictions. This underscored the imperative need for global collaboration in the face of this intricate challenge.
While acknowledging the European Union’s commendable advancements in the realm of crypto regulation, Villeroy offered insights on the potential necessity of a revised iteration of the Markets in Crypto Assets (MiCA 2) legislation.
He aptly termed “MiCA 2,” a revised legislation that would specifically address the regulatory measures concerning crypto conglomerates.
Significantly, the European Parliament granted approval to MiCA 2 in April of this year, followed by the EU Council’s endorsement of the world’s pioneering comprehensive set of crypto regulations in May.
This concerted effort is widely regarded as a substantial initiative to effectively regulate and supervise the crypto sector.
The introduction of MiCA 2 follows notable occurrences such as the unfortunate collapse of major players like the cryptocurrency exchange and the subsequent regulatory crackdown on industry leaders, including Binance.
The crypto market cap is currently around the $1.038 trillion range in the daily chart. | Source: TOTAL chart from TradingView.com
These events have further underscored the pressing need for robust regulatory frameworks to ensure the stability and integrity of the crypto industry.
Advocacy For ‘MiCA 2’
The existing framework of MiCA has yet to encompass specific activities, products, and services tied to digital assets.
Notably, crypto lending, decentralized finance (DeFi), and non-fungible tokens (NFTs) remain outside the scope of its regulatory reach.
Consequently, notable figures in the realm of governance and policymaking, including Christine Lagarde, the president of the European Central Bank (ECB), have advocated for the implementation of a secondary set of regulations, commonly known as “MiCA 2.”
Villeroy, at a prominent tech forum held in Paris, where an audience comprised of startups, executives, and investors congregated, drew attention to the nascent nature of decentralized finance as a technological innovation.
Expressing the need to subject actors utilizing this technology for financial services to regulation, he emphasized the importance of uniform rules designed to address comparable risks associated with such activities.
Featured image from iStock, charts from TradingView.com
