In a recent interview with the Financial Times, the head of financial services of the European Commission talked about the potential threats that digital assets could pose to financial stability if left free.
Call for global norms and standards for cryptocurrencies
McGuinness said: "We must also see other actors legislate, perhaps in a different way, but with the same goal ... We need to think about global regulation of cryptocurrencies."
Although the chief expressed optimism that US politicians are "moving in the same direction" as the EU, he noted: "At the European level there is a lot of concern about [what would happen] if cryptocurrencies were not regulated."
“There could be - over time, if it grows - financial stability problems. There are also problems for investors related to the lack of certainty, ”McGuinness quoted. In another recent interview, Department of Justice chief for cryptocurrencies, Eun Young Choi, raised "serious national security concerns" stemming from cryptocurrency exploits and DeFi scams.
US Democratic Senator John Hickenlooper wrote to the US Securities and Exchange Commission (SEC) just last week to "take action" regarding oversight of the new asset class.
In the past, Indian Finance Minister Nirmala Sitharaman has also called for global cooperation on cryptocurrency regulation.
Are the US and the EU on the same page?
After the EU's implementation of the much-discussed regulatory framework on crypto-asset markets (Markets in Crypto-Assets, MiCA), the US Congress has yet to pass a law that provides similar legislative clarity.
Additionally, last week the Financial Stability Board (FSB), an international agency that oversees the global financial system, presented nine cryptocurrency regulation proposals that it hopes will be implemented by G20 countries before the crypto winter ends.
Nikhil Rathi, chief executive of the UK's Financial Conduct Authority, said the regulator had "rigorously applied the new money laundering standards", warning consumers of potential risks. Meanwhile, the supervisor is also maintaining a warning list of unauthorized firms. According to the annual Consumer Investment Strategy report, the FCA opened 2.724 investment cases, imposing restrictions on twice as many investment firms as the previous year. However, over the past financial year, 8.568 alleged cryptocurrency scams have been reported to the organization.
