What to know:
- Regulators AMF, FMA, and Consob have urged EU oversight for significant crypto providers under MiCA regulations.
- They propose stricter cybersecurity audits and regulations for offshore platforms that cater to EU customers.
- Variations in national regulation may undermine investor protection and disrupt EU markets.
Market watchdogs from France, Austria, and Italy are advocating for tighter European Union regulations regarding crypto to ensure investors’ safety amid inconsistent enforcement of MiCA. In a joint statement, authorities from France’s Autorité des Marchés Financiers (AMF), Austria’s Finanzmarktaufsichtsbehörde (FMA), and Italy’s Consob noted discrepancies in national implementation of the law, potentially jeopardizing investor security. They fear that under the current system, companies could exploit lenient jurisdictions to evade stringent regulations, thus affecting Europe’s competitiveness in digital assets.
The regulators suggested handing direct supervision of large crypto-asset service providers to the European Securities and Markets Authority (ESMA). Furthermore, they seek to close loopholes that allow EU intermediaries to circumvent MiCA by routing orders to non-compliant offshore platforms, risking the safety of investors.
In addition, they called for mandatory cybersecurity audits before firms are granted or renew MiCA licenses, citing the sector’s vulnerability to cyberattacks. They also proposed a centralized system for managing token white papers to enhance clarity in cross-border offerings.
While MiCA aims to standardize crypto oversight across Europe, immediate adjustments are crucial to meet international standards established by the Financial Stability Board and IOSCO. If these changes are not made, regulators warn of possible emergency measures that could further destabilize Europe’s digital asset market.
