Following the bankruptcy of FTX, Christine Lagarde said that the “stability and reliability” of cryptocurrencies had been undermined. Thus, the President of the European Central Bank praised the interest of a second part of the MiCA regulation “in order to regulate more broadly” the cryptocurrency sector.
Christine Lagarde wants to better regulate cryptocurrencies
Following the turmoil caused by the FTX file which has occupied most of the news since the beginning of November, European Central Bank (ECB) President Christine Lagarde argued for more regulation of cryptocurrencies.
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During a discussion in the European Parliament with some representatives concerning the bankruptcy of FTX, the President of the ECB made it known that in her opinion, the ” stability and reliability of cryptocurrencies had been chipped.
Relying on one of her previous statements dating from last June, Ms. Lagarde said that a second version of the MiCA project was necessary under the name “MiCA II” :
“At least Europe [sur la voie de la réglementation des cryptomonnaies] is ahead of the pack. But as I said before, it’s a step in the right direction. That’s not all – it will take a MiCA II, which encompasses more broadly what it aims to regulate and oversee, and it is badly needed. »
Following its adoption by the European Parliament last October, the first official form of MiCA should begin to frame the European cryptocurrency market for the year 2024.
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FTX, the start of stronger regulation?
The entry into force of MiCA being planned for the beginning of the year 2024 with its current foundations, MiCA II could fill the “gaps” of its predecessor in particular by attacking the sector of decentralized finance (DeFi) and direct links between traditional finance and cryptocurrencies.
Aware of the growing interest of the European population for cryptocurrenciesin a context of rising global inflation, the President of the European Central Bank said that ” digital payment alternatives would be offered to European citizens.
“We have to be able to offer that, otherwise someone else will take that place. »
Stefan Berger, German MP and member of the European Parliament’s Economics Committee and defender of the MiCA plan, also took the opportunity to bounce back from the collapse of FTX. To the point of advancing that with MiCA, the collapse of FTX would never have happened:
“The FTX case clearly shows what the dangers of a completely unregulated crypto market and unlicensed crypto exchanges are. We still have a large number of crypto asset service providers whose concept is not comprehensible. MiCA tackles exactly this problem. With a global MiCA, the FTX crash would not have happened. »
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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