International cooperation is necessary to regulate crypto conglomerates, according to the head of the central bank of France. Speaking at a tech forum in Paris, Governor Villeroy de Galhau also suggested that a new version of the EU’s recently adopted crypto law may be needed to deal with the issue.
Regulation in Single Jurisdiction Insufficient in Case of Crypto Giants, Villeroy Convinced
Cooperation on the international level is needed to regulate crypto conglomerates, the Bank of France Governor, Francois Villeroy de Galhau, stated at an event during the Vivatech technology conference in the French capital.
Quoted by Bloomberg, Villeroy elaborated that it’s not sufficient to regulate one legal entity in one jurisdiction. He gave an example with U.S. crypto companies that have different legal entities operating in various jurisdictions which, in his view, creates the need for international collaboration.
While emphasizing that the European Union is ahead in terms of crypto regulation, the central bank executive suggested that a new version of the Markets in Crypto Assets (MiCA) legislation may be necessary to tackle the regulation of crypto conglomerates, referring to it as “MiCA 2.”
Members of the European Parliament greenlighted MiCA in April of this year and the EU Council approved the bloc’s first crypto rules in May. The package is also considered to be the first world’s comprehensive attempt to regulate and supervise the sector.
MiCA comes in the aftermath of the collapse of major players, such as failed cryptocurrency exchange FTX, and a regulatory crackdown on other industry leaders, for example, the world’s largest trading platform for digital assets, , in the United States.
However, a number of activities, products and services related to digital assets remain outside MiCA’s scope, including crypto lending, decentralized finance (defi) and non-fungible tokens (NFTs). This has led to officials and policymakers, including President of the European Central Bank (ECB) Christine Lagarde, calling for the adoption of a ‘MiCA 2’ set of regulations.
“Decentralized finance is only a new technology. You have actors using this technology for financial services, they need to be regulated. Same action, same risks, same rules,” Banque de France Governor Villeroy insisted during the tech forum which gathers startups, executives, and investors in Paris.
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