Major Debate on Cryptocurrencies in the European Union – Three Major Economies Call for Action

Three major European market regulators have warned that investors are not being adequately protected, citing serious shortcomings in the implementation of the European Union's cryptocurrency regulation, MiCA. A joint statement issued by France's financial markets authority, the AMF, Austria's FMA, and Italy's Consob stated that “large differences in how national authorities apply the law” were observed in the first months of MiCA's implementation. The regulators argued that this could lead companies to seek out countries with the most flexible rules, undermining both investor security and European competitiveness in the digital asset space. The regulators presented four key recommendations. First, they called for the largest crypto asset service providers to be directly regulated by the European Securities and Markets Authority (ESMA). They also stated that loopholes that allow EU brokers to route orders to offshore platforms not subject to MiCA should be closed. Related News: Big Whales Are Quite Active: Here Are Their Altcoin Trading Activities in Recent Hours The statement also recommended introducing independent and mandatory cybersecurity audits for companies seeking to obtain or renew their MiCA licenses. Finally, it stated that token white papers should be consolidated into a single, centralized filing system, making cross-border offerings more transparent and legally clear. Authorities noted that MiCA was introduced to harmonize crypto regulations across the EU, noting that the regulation must be quickly updated to align with Financial Stability Board (FSB) and IOSCO standards. Otherwise, they warned, national regulators could be forced to take “urgent measures,” potentially fragmenting Europe's digital asset market. *This is not investment advice. Continue Reading: Major Debate on Cryptocurrencies in the European Union – Three Major Economies Call for Action