“Never again an FTX! – European regulators join the dance with MiCA

MiCA, solution or problem? – Whereas the disaster around FTX is still warm, but the regulators have already smelled blood. They throw themselves, like hungry piranhas, on this beautiful pattern of tighten the regulatory noose, very firmly. Particularly in the European Union, with the promoters of the regulation Mica (Markets in Crypto-assets).

Would MiCA have prevented the FTX risk?

The disaster of the case FTX allows, as in the days of Terra (LUNA) and its UST, to push faster and harder the regulatory restrictions on the sector of Bitcoin (BTC) and cryptocurrencies.

In the European Union, for example, this is the perfect opportunity to promote the MiCA regulation issue. Thereby, Stefan Bergermember of the Economic Committee of the European Parliament – and also rapporteur of the MiCA text -, jumps at the chance to call back the urgency to frame the crypto-asset sector.

” Shame ! The FTX/Alameda case cost huge trust. Such “Lehman Brothers” moments in the cryptocurrency industry should be avoided. This is exactly the raison d’être of MiCA. Crypto-assets are not fictitious money to play with. Digital Asset Service Providers (DASPs) must have internal risk management mechanisms in place. »

Twitter account @DrStefanBerger

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More than a European MiCA, a global MiCA, definitely!

MEP Stefan Berger will even much further in its call to adopt MiCA as quickly as possible. To avoid any risk of “FTX bis”. In a comment addressed to the crypto-media Cointelegraphthe politician explains that the regulation of cryptos carried by MiCA should be implemented worldwide!

“The FTX case clearly shows the dangers of a completely unregulated cryptocurrency market, as well as unlicensed cryptocurrency exchanges. [des régulateurs]. (…) We still have a large number of digital asset service providers whose concept is not comprehensible. The MiCA regulation addresses exactly this problem. With a global MiCA, the FTX crash wouldn’t have happened. »

Stefan Berger, MEP

The MiCA rapporteur concludes that regulation would be a “good tool to restore trust” in a crypto market more than ever in difficulty because of FTX. On this last point, it is true that a deep crisis of confidence risks undermine morale (and prices) of the crypto sector. More transparency and a “Proof of Reserve” from cryptocurrency exchanges will be more than welcome in times to come.

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