The European Parliamentary Research Service (EPRS) is advocating for tighter oversight of the cryptocurrency market beyond the European Union (EU). With the recent adoption of the Markets in Crypto-Assets Act (MiCA), the EPRS stresses the importance of extending robust regulatory measures to non-EU nations to enhance market stability and promote growth.
Highlighting the EU’s financial system’s vulnerability and dependence on non-EU countries’ actions, the European Parliament underscores the necessity of effective global cryptocurrency regulation. The absence of comprehensive crypto regulations is seen as a threat to financial stability and could diminish the market’s appeal, particularly concerning the extensive use of stablecoins.
The EPRS recently issued a report on the state of cryptocurrency regulation outside Europe, particularly focusing on the United States, where regulatory efforts remain fragmented with various stakeholders involved. This fragmentation has indirectly contributed to regulatory ambiguity and uncertainty.
Taking a global perspective, the report notes that many countries have adopted diverse approaches to regulate cryptocurrencies. To date, at least 19 sovereign jurisdictions have taken actions related to cryptocurrencies.
Earlier this year, the EU introduced crypto market requirements through MiCA, set to become effective in December 2024. These regulations aim to facilitate the entry of cryptocurrency firms into the European market. Starting in 2025, crypto transactions will be subject to supervisory measures, with crypto exchanges mandated to report transfers exceeding €1,000 to regulatory authorities.
Several nations, including the United States, have expressed support for the EU’s efforts to regulate the cryptocurrency market. The United States, in particular, is considering using MiCA as a model for its own cryptocurrency regulations, highlighting the global impact of Europe’s approach to crypto oversight.