ECB President Lagarde calls for an MiCA 2 as she wants to go beyond the regulation of cryptocurrencies.
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- Lagarde calls for MICA 2, regulation that focuses on DeFi a movement encouraging alternatives to traditional, centralized forms of financial services.
- Believes that MiCA 1 has a “narrow view” of crypto.
- Believes that cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. lending needs to be regulated regulation is when something is controlled by a specific set of rules.
- A MiCA 2 could regulate Bitcoin as well
The president of theBanco Central Europeo, Christine Lagarde, has long been highly critical of cryptocurrencies, although she acknowledges that your son is an investor . He has said, “Cryptocurrencies are not currencies, period.” among other similar rulings that demonstrate his position. However, if there is one thing he considers extremely important is their regulation, given that they are speculative assets.
During his appearance yesterday before MEPs on the European Parliament’s Committee on Economic and Monetary Affairs (Econ) in the European Parliament in Brussels, Lagarde set out her position on the project of Cryptoassets Markets Regulation (MiCA) ), which will enter into force in 2024 and will provide regulatory clarity to users, companies and other actors in this sector.
However, while Lagarde thanked the lawmaker in charge of the development of the MiCA, called for the introduction of “MiCA 2”, considering that it MiCA (he called it Mica 1 ) has a “narrow” vision.
He also considers 2024 to be a very distant date: “It’s a long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. way off when you think about the speed at which market an area or arena, online or offline, in which commercial dealings are conducted. values evolve. We wanted to go in the direction of those who have the will to regulate these assets.” Ms Lagarde.
Why would a MiCA 2 ?
According to Lagarde’s proposal, this “second part” of the bill would seek to extend the regulations to focus on the protocols of the Decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. Finance, DeFi. MiCA 1 seems more moderate by comparison and will not affect Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and other cryptocurrencies.
MiCA 2 may also attempt to regulate Bitcoin . Lagarde said:
“Including (MiCA 2) should regulate cryptoasset, staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. and lending activities, which are definitely increasing. MiCA 2 should fully cover decentralized finance (DeFi), currently the focus on financial intermediaries. Where there is no intermediary, regulation does not apply, and that is the case with Bitcoin. Therefore, Bitcoin will not be covered by MiCA 1, but hopefully for MiCA 2 it will take it into account.”
In this regard, Lagarde called on lawmakers to start working on a proposal to MiCA 2. The aim, like Lagarde, is to regulate the nascent asset class. “in depth” and with a “broader scope”.
Crypto is “risky”
The president of the ECB believes that cryptocurrencies “put consumers at risk” and are allegedly used to enable criminal activity. Lagarde hopes that more regulations will deter actors from using cryptocurrencies to allegedly commit “fraud, profiteering and illegitimate claims of criminal valuations and dealings.” .
In this regard, he said:
“Los criptoactivos y las finanzas descentralizadas tienen el potencial de crear un riesgo real para la estabilidad financiera dado el rápido crecimiento de los servicios y los criptoactivos… Por el momento, los vínculos entre los criptoactivos y las finanzas tradicionales siguen siendo muy limitados. La Junta Europea de Riesgo Sistémico desea implementar rápidamente una regulación de los criptoactivos que todos conocen como Mica”added the latter, who called her Mica 1.
If the financial institution and EU lawmakers decide to follow Lagarde’s suggestion, they could try to impact miners, users, wallet a place where cryptocurrency users can store, send and receive digital assets. providers, and decentralized technologies from Bitcoin.
Commenting on this proposal, the general counsel of Delphi Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. Labs Gabriel Shapiro said:
“ECB President Christine Lagarde calls on the EU to pass a “MiCA 2” that directly regulates Bitcoin and other decentralized technologies (rather than simply regulating cryptoasset a cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application. intermediaries (as “MiCA 1″ does)).”
Reaction of deputies
Aurore Lalucq, MEP, of the Economics Committee, considered Lagarde’s intervention “rich” and wrote so on Twitter:
“Rich audition of Madame Lagarde. ‘ In my opinion, cryptocurrencies are not based on anything… it wasn’t me who said it, it was you’. Madame Lagarde’s view on cryptocurrencies and their risks. And the appropriate reaction to have.
A good hearing for Mrs Lagarde.
“In my opinion, cryptos are not based on anything… it wasn’t me who said it, it was you”.
Madame Lagarde’s take on cryptos and their risks. And the appropriate reaction to have. Thread ???? pic.twitter.com/kuayCcf8Jk
– Aurore Lalucq (@AuroreLalucq) June 21, 2022
“It is a pleasure that we salute the last words of Ms. Lagarde when she talks about a new work of reflection around a MiCA 2 in order to broaden the spectrum and regulate as much of the cryptosector as possible, however, still once, they are advocating for a reopening of regulations and guidelines.” Lalucq told the mediaBFM Crypto.
Sources: Twitter, BFMCrypto , Finbold , archivo
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