MiCA 2 – Christine Lagarde Wants To “Go Further” In Crypto Regulation

Europe is at the forefront of aggressive regulation of the cryptocurrency industry. With a MiCA law that is still in the making, but is already causing cold sweats among the players in this digital economy. And proposals as unlikely as a Proof of Work (PoW) ban on Bitcoin, simply demonstrating the ignorance of those who nevertheless want to control this ecosystem. A vendetta vigorously led by European Central Bank (ECB) President Christine Lagarde. The latter is already thinking of a MiCA 2 that is even more restrictive than its original version.

Managing the cryptocurrency sector is not a smooth affair on an international level. Some countries try to integrate innovations as well as possible. And on the other hand, Europe looking for the worst proposals to try to block the road, with its MiCA bill† To the point where certain countries, such as Germany, refuse to adapt to surveillance requirements that are considered abusive. But of course this doesn’t stop Christine Lagarde from looking even “bigger” in the field.

Indeed, the current president of the European Central Bank (ECB) is mainly distinguished by her hatred of cryptocurrencies and everything associated with them. Digital assets that are “worth nothing”, but still need to be regulated as soon as possible† A position that was reconfirmed last week. This during an intervention before the Committee on Economic and Monetary Affairs of the European Parliament. Because on this occasion Christine Lagarde addressed the need to:a MiCA 2 “which will have a wider scope and regulate more in depth† ” A whole program !

MiCA 2 – The Return!

All this happened on June 20. During an intervention by Christine Lagarde before the Committee on Economic and Monetary Affairs of the European Parliament. All as chairman of the European Systemic Risk Board, whose name alone causes a cold sweat. An event where she was invited to talk about cryptocurrencies with MEP Aurore Lalucq, also known for her visceral loathing of this digital economy. And of course nothing really positive for this sector can come out of these kinds of meetings. But there was also nothing to indicate that it would be a matter ofa possible MiCA 2even though the first version is still in the boxes of the European authorities.

We welcome the arrival of MiCa 1. But we encourage you to go ahead and develop MiCa 2, which will have a broader scope and which will regulate some of these innovations more deeply, in these unknown areas that pose risks to consumers and where the lack of regulation makes it often possible to cover up fraud, manipulation, speculation and criminal activity† †

Christine Lagarde

Because the MiCA law is not yet in force† After all, things still go back and forth in the European administrative twists and turns. And this especially since the rejection of the ban on Bitcoin’s Proof of Work mechanism last March. He grabbed a win at the last minute, before his actual vote. But of course a warning about the very liberticidal nature of this project, which was not heard by the initiators of this repressive masquerade† This even if some crypto players have split a letter to the attention of European officials. With the aim of demanding “fair treatment of the sector”, which is obviously not a priority.

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MiCA2 = MiCA1 + Bitcoin?

But what could be worse with this MiCA 2 than its first version? In any case, apart from the perpetual refrain of investor safety and the highly criminal – and above all fantasized – nature of using cryptocurrencies. A question that Christine Lagarde does not omit during this intervention. With 3 specific points that she believes require special attention. And this to capitalize “on the risk of interconnection with financial institutions exposed to crypto assets. †

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The first point to be addressed is: turn off cryptocurrencies, ie the latter’s deposit for a fee in the form of API. But of course this also includes lending (borrowing) for rewards (rewards). Sectors that are developing too quickly according to Christine Lagarde† And under the influence of significant difficulties at the moment, as in the case of the company BlockFi.

Then there is the problem of decentralized financing (DeFi). “Because if there are no financial intermediaries, the legislation does not apply. A situation that Christine Lagarde wants to end with her MiCA 2. With the possibility, according to her, to include Bitcoin that is “not covered by MiCa 1”. But she hopes that “MiCa 2 will take this into account. †

Finally comes the case of issuing cryptocurrencies “when there is no identifiable issuer.” This is the case for many of these digital assets in the DeFi sector, but not only. Because again Christine Lagarde is referring to Bitcoin, for which she says “this is absolutely the case”. Let’s imagine he may remain one of the potential targets of this next version of the MiCA law. Even after the failed Proof of Work ban…

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