The European Parliamentary Research Service (EPRS) has underscored the importance of enhanced regulatory supervision by non-European Union (EU) authorities to promote greater stability and progress within the global cryptocurrency market.
In light of the impending implementation of the Markets in Crypto-Assets Regulation (MiCA) Act by December 2024, an EPRS report underscores the importance of establishing a more stringent regulatory framework outside the EU. The report highlights ongoing concerns about potential ramifications for financial stability, reduced market attractiveness, and the mainstream adoption of stablecoins.
The report further points out the fragmented regulatory landscape in the United States, involving multiple state-level and federal entities, which indirectly affects legal clarity and regulatory predictability.
As per the report, the United States possesses a decentralized regulatory framework, characterized by a multitude of state-level and federal entities, which indirectly influence legal comprehension and regulatory assurance.
The report further drew attention to the Financial Services and Markets Act in the United Kingdom, as well as a study commissioned by the European Parliament. This study anticipates a notable disparity “in the coming years between the UK and the EU regarding the classification of crypto-assets.”
The Malta Financial Services Authority (MFSA) began seeking public input on September 18th to review and amend its cryptocurrency regulations, aligning them more closely with the forthcoming MiCA regulations. The proposed changes encompass adjustments to regulations governing exchanges, custodians, and portfolio managers to harmonize with the European Union’s MiCA regulations.