Regulation in the crypto space
According to the EU’s top regulator, some market participants are purposefully avoiding regulation in the crypto space, who also called for a global approach to protect retail investors.
The EU approved the Markets in Crypto-Assets (MiCA) regulation in June. This should reduce the risks for consumers purchasing crypto assets. The rules state that providers will be liable if they lose investors’ crypto assets. However, the regulation will not take effect for another year.
Companies in the cryptocurrency sector are already moving in the direction that legislation suggests if they want to be a part of the regulated system and receive the regulatory authority’s seal of approval.
Some people initially invested in crypto because they didn’t want to be a part of the regulated, managed system. They want it to exist independently of and in parallel with it.
The European Union has tightened rules in this area and advocated for a global approach. McGuinness met with her US counterparts last month to discuss cryptocurrency regulation.
Following the demise of FTX, some US policymakers urged the Treasury to do more to address investor risks.
Officials in the United Kingdom are reportedly working on a new plan to regulate cryptocurrency.
The Russian central bank maintains an extremely negative stance toward cryptocurrencies. It proposed a ban on local miners selling coins to locals.
As part of a draft law introduced in mid-November 2022, the Bank of Russia has approved the idea of legalizing cryptocurrency mining in Russia.
However, the Russian central bank wants miners to be able to sell their cryptocurrency only on foreign exchanges and to non-Russian residents, according to the local news agency Interfax on December 7. The most recent information is just the latest in many disputes over cryptocurrency regulation between Russia’s anti-crypto central bank and the more pro-crypto Ministry of Finance. Years of debate have only contributed to a situation where Russian citizens and residents lack a clear cryptocurrency framework. However, local crypto adoption is increasing.