By Peter Bergman (MoneyAmped.com)
The governor of the Bank of France said that international cooperation is needed to ensure the regulation of cryptocurrency companies. During his speech at a technology meeting in Paris, Governor Villerois de Galleau suggested that recent European Union cryptocurrency laws may have to be changed to cope with the problem.
The Fight Against Crypto-Giants Will Be a Long One
Villeroy is confident that more than regulation by one state is needed to deal with cryptocurrency giants.
François Villeroy de Galleau, the esteemed governor of the Bank of France, speaking at the Vivatech technology gathering in the French capital, emphasized how important it is for governments worldwide to work together to keep an eye on cryptocurrency companies.
Villeroy said in a Bloomberg article that having regulations covering more than one entity and region is essential. He gave the example of U.S. cryptocurrency companies with different official bodies operating in other locations. From their perspective, this means that everyone has to work together.
Much Will Depend on the European Union
The respected head of a central bank noted that the European Union is a leader in regulating cryptocurrencies. Conversely, the executive believes that a new version of the Crypto Asset Markets Act (MiCA), dubbed “MiCA 2,” may be needed to regulate cryptocurrency companies.
Members of the European Parliament gave MiCA the green light earlier this year, and in May, the EU Council approved the first crypto laws on the block. People call the package the first attempt on a global scale to control and monitor the Bitcoin business.
How Did Mica Come About, and Is It So Necessary?
Mica came after several important companies collapsed, such as bitcoin exchange FTX, and other significant players were forced to comply with regulations. Binance, the world’s largest digital asset trading platform, was shut down in the U.S.
While MiCA regulates a wide range of activities, goods, and services related to digital assets, it is essential to note that it does not cover cryptocurrencies, decentralized finance (defi), and non-playable tokens (NFT). Because of this situation, senior officials and decision makers such as Christine Lagarde, president of the European Central Bank, are pushing for a regulatory framework called MiCA 2.
Decentralized finance is a new way of using technology to improve financial processes. It is essential to have rules on how players can use this technology for banking services. Governor Villeroy of the Bank of France emphasized how important it is to stick to the same actions, risks, and rules at the technology event in Paris, where startups, executives, and investors gathered.
