The head of the ECB, Christine Lagarde, calls for the introduction of new rules for regulating the crypto industry in the European Union

The head of the ECB, Christine Lagarde, calls for the introduction of new rules for regulating the cryptocurrency industry in the European Union. She again called for the regulation of cryptocurrencies in the European Union (EU) after the collapse of the FTX crypto exchange.

Speaking at a hearing before the Committee on Economic and Monetary Affairs, Christine Lagarde pointed out that the EU has already been able to make significant progress in reducing the harm caused by digital assets. She cited the Libra project as an example of ECB involvement, pointing out that it was necessary to prevent some market participants from working with the industry.

What are the rules for regulating the crypto industry?

In her speech, Christine Lagarde noted that the EU, in some way, has already been able to succeed in introducing a number of rules in the cryptocurrency markets. In particular, the ECB announced that a draft law on cryptocurrency asset markets is being developed. It also discusses the issues of regulation of the cryptocurrency sphere.

These include consumer protection, anti-money laundering, environmental impact and business accountability. However, according to the head of the ECB, this is no longer enough. We need a new bill that includes what needs to be regulated and controlled.

When can a bill to regulate cryptocurrencies be passed?

At the moment, the MiCA project is undergoing hearings in the European Parliament, and is awaiting final approval. In early October, the Economic Committee of the European Parliament adopted this bill and most likely its final approval will take place before the end of this year.

It will finally come into force in 2024. Once adopted, cryptocurrency exchanges will be required to report transfers to private wallets if the volume of the transferred cryptocurrency is over 10,000 euros.

If the new bill specifies tighter restrictions, then crypto exchanges will be forced to provide even more data about their customers and where and where they are going to transfer funds. After the collapse of the FTX exchange, increased regulation of the cryptocurrency industry is a logical step on the part of the global financial bureaucracy.