Elizabeth McCaul, Member of the European Parliament (MEP) from The United Kingdom, has recently proposed reforms to the Markets in Crypto-assets (MiCA) bill set to be voted on later this month. McCaul's main goal is to ensure stricter law enforcement in order to increase supervision of crypto-currency exchanges. McCaul addressed the need for this increased control due to a growing number of controversial events, such as the investigation by the Commodities Futures Trading Commission (CFTC) against Binance.
McCaul acknowledges the Markets in Financial Instruments Directive (MiFID) as an existing law regarding regulatory and supervisory oversight. However, she believes that this has proven inadequate in the face of unreliable or unscrupulous exchanges, as evidenced by recent high-profile banking failures. To combat this, McCaul suggests the adoption of methods similar to how combined organizations are supervised and regulated by college-like groupings of global regulators. Additionally, McCaul proposes an international agreement to allow for authority deferment to foreign countries, with the added necessity of criminalizing of activities within the crypto-economy.
The introduction of the MiCA bill is a major step toward regulating the crypto-currency industry, requiring entities to become more legally accountable for their operations. To achieve full approval, companies must meet the requirements regarding governance, client money segregation, and external audit standards. MiCA also sets a benchmark ensuring that exchanges that have 15 million active users in Europe would be overseen by the European Banking Authority and the ECB.
In conclusion, Elizabeth McCaul's proposed reforms to the MiCA bill are fundamental in the effort to create more transparency and accountability in the crypto-currency exchange industry. By imposing stricter regulatory practices and higher standards, McCaul intends to protect exchanges from engaging in unscrupulous activities, safeguarding user information and money. It remains to be seen, however, if the MiCA bill will be successful upon implementation and if it will be able to stand the test of time.
Nicholas Howard
- 2023-04-05
Reforms to the Markets in Crypto-assets (MiCA) Bill
Elizabeth McCaul has recently proposed reforms to the Markets in Crypto-assets (MiCA) bill set to be voted on later this month. The goal is to ensure stricter law enforcement in order to increase supervision of crypto-currency exchanges. Learn about MiCA and its implications for the crypto industry.
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