Debate: Markets in Crypto-assets  - Information accompanying transfers of funds and certain crypto-assets
Date: WEDNESDAY, 19 APRIL 2023
Speaker: Mairead McGuinness
Language: EN

In addition, we all know that crypto activity is not within a borders regime – it crosses borders, it’s international. While we have done our work, and I compliment you ahead of tomorrow’s vote, I think it’s really important that we work internationally as well. So we’re hoping that our international partners will also look at introducing legislation or regulation around this space. What we believe is that having a regulatory framework on crypto assets allows the industry to evolve in a more cohesive and safer environment. And I would hope that our work, our rules could become a model for other countries. We’re also closely following the work of the Financial Stability Board on crypto assets, so it’s not as if we have done our work and are ignoring what is happening and, indeed, what will continue to happen in the future. But I repeat the point that global convergence is absolutely key. Here in the European Union, our new rules will protect against risks to consumer protection, market integrity, money laundering and financial stability, and I think those are very important issues for citizens. As I mentioned in my opening remarks, the first of these rules will come into application in July 2024. In the meantime, I strongly encourage our supervisors to watch these activities very carefully already now, even before the new rules apply formally. And I believe that that is happening and I would encourage it. But also to add – and I think some of you have alluded to this – that this area of crypto is evolving even as we speak. And therefore, we know that tomorrow’s vote is not the conclusion of our work on crypto. There are issues which we will probably need to look at, but it was a little bit too early to do it in this legislation. And here I mentioned decentralised finance, lending and borrowing of crypto assets and non-fungible tokens. It was considered to be premature to fully address these issues, considering their early development and novelty in these markets. So it’s not fully clear yet if we will need additional legislation, but the Commission is mandated to assess the feasibility and necessity of regulating those activities within 18 months after the entry into force of MiCA, and indeed, we’re starting to prepare that work now. In relation to whether our rules would have prevented some of the more recent events which have dramatically impacted citizens around the world, we believe that had FTX, for example, been captured under EU jurisdiction, many of its practices would not have been permissible under MiCA or indeed under applicable rules already, such as MiFID, for their derivatives business. And for example, service providers under MiCA must properly manage or disclose conflicts of interest. And there are strict rules on segregating clients’ assets. In addition, MiCA explicitly prevents the use of clients’ funds for the trading platform’s own account. And on the issue of environmental impacts, the co-legislators, in my view, agreed on a very balanced position to address this issue by robust disclosure requirements. So I think on these issues we are certainly very clear about the work we have done and, indeed, open to what might lie ahead. A comment was made about the EU criminalising crypto. Of course, that is not the case at all. Those who engage in criminal activity criminalise themselves. What we are putting in place is the regulations to ensure that we find out what is happening in this area and indeed avoid that it happens at all. On the latter questions of cash and freedom and those important points, I constantly say as commissioner responsible in this area that we absolutely defend the rights of citizens to have access to cash. But I dare say that issue will arise in the upcoming debate around the digital euro. But I really appreciate the opportunity to have had this debate with colleagues today. I thank you very much for your incredible work in this area and I look forward to seeing the result of tomorrow’s vote.