LAGARDE WANTS TO REGULATE BITCOIN IN MICA 2.0
Christine Lagarde spoke to the European Parliament on Monday June 20th, arguing that the EU's cryptocurrency law, Markets in Crypto-assets (MiCA), is not strong enough and needs to be further strengthened. She called for a MiCA 2.0 regulation that covers staking & lending, DeFi & assets without an identifiable issuer (self custody). She explicitly requested the EU Parliament to regulate Bitcoin in MiCA2. She declared:
“MiCA 2.0 would have a larger scope & would regulate in depth some of those innovations in these unchartered territories that put consumers at risk & where the lack of regulation is covering fraud, completely illegitimate claims about valuations, speculation & criminal dealings”
”Crypto assets & DeFi have the potential to pose real risk to financial stability”.
“Where no such intermediaries exit the legislation does not apply and that is to my knowledge the case for Bitcoin (…) but hopefully in MICA 2 you’ll take that into account. (…) MICA 2 should regulate the issuance of cryptoassets where there is no identifiable issuer that is definitely the case for Bitcoin“
The ADAN association of cryptoassets development is alarmed from the urgency the French government is putting to finish hastily the piece of regulation MICA before the end of the term of the French presidency of the EU instead of giving enough time to calibrate the regulation according to its efficiency and the real risk evaluation.
Meanwhile France Payments Forum published a position paper supporting the regulation and reminding the EU for the need of large scale support of the crypto ecosystem with funding to increase its competitiveness (See also Valuechain and SYRTALS article about a Smart regulation of cryptos)