The regulation of digital assets has been the watchword since the explosion of the ecosystem. Today, more and more organizations are only thinking about that, putting more security in the markets while the decline continues. Even if Circle does not oppose it, it still thinks that the European banking regulator’s crypto directives should follow those of MiCA.
In short
- Circle does not approve that the European Banking Authority’s crypto guidelines are not similar to those of MiCA
- The regulator says the crypto sector poses too many risks with its new technologies and privacy-enhancing features.
Crypto regulation, only if it respects MiCA terms, says Circle
Regardless of the state of the markets, institutions have only one goal, to reduce the risks associated with cryptocurrencies. As a result, periods appear a little more every day. Whether it’s the SEC, the CFTC or the European Banking Authority (EBA), they all only think about maintaining control over an ecosystem in perpetual motion.
After a public consultation by the ABE, Circle has shared his response on a blog on September 5. According to statements by Patrick Hansen, director of European strategy and policies of the company, the terms used by the regulator are too vague.
Indeed, the latter qualifies the company as a service provider in the crypto market. And the issuer is not satisfied, since these terms do not correspond to MiCA standards. According to Hansen, the correct qualification is cryptocurrency service provider, which better suits his business.
A company evolving in the ecosystem
Many companies stand out in the crypto market and among them, Circle. The company does not skimp on the means to continue its development despite the bear market. In fact, she has a series of projects. Between the launch of its Web3 wallet and the launch of its Cross-Chain Transfer Protocol, there is plenty to do. However, she is also known for her interventions to prevent the risks of regulation on the industry.
Therefore, the fact that the European banking regulator designates it in its own terms does not suit it at all. According to Circle, this ambiguity could include all technology service providers, including web infrastructure and blockchain.
Despite Circle’s protests, it is important to note that the ABE is convinced that it is right. Indeed, she claims that crypto service providers present many risks. Therefore, fixed rules are needed to regulate the sector.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss anything of the Tremplin.io essentials!
