The Chairman of the ESMA, Verena Ross, has become the latest popular figure to call for regulations in the crypto space that will seek to provide cover for investors. In an interview some days ago, Ross, who acts as the top executive for the European Securities Market Authorities, noted that lawmakers need to intensify their efforts toward regulations. According to the executive, the lawmaking body needs first to drum up a blueprint to ease it into law subsequently.
ESMA boss wants a European regulatory framework
According to the interview transcripts, the ESMA top executive mentioned that the rising inflation could be doing more harm to investors. With this, she believes that most of them will be looking for the next best crypto project to invest in in the market. However, she warned that the move could cause them to take higher than normal risks, which sometimes lead to them losing funds.
Presently, each European Union member has specific crypto laws that guide their respective countries. Ross talked about crypto exchanges in her statement about a common regulatory framework, noting that EU regulators need to find a commonplace to deal with them. She said that the current diversified laws across different countries had caused an imbalance among regulators in respective countries.
The MiCA law is currently in review
According to several reports, the European Union has been setting its sights on the draft crypto regulation that was drummed up in 2020 by MiCA. The said regulation has been on the cards for a long while now, with regulators always flirting with the idea of adopting it over the last two years since it was set up. However, the parliament is currently reviewing the draft with the notion of picking out the odds and choosing the right ones to adopt.
The ESMA boss also mentioned that she expects the parliament to finalize the review stage and sign the regulation into law in the next two years. Asides from the ESMA boss, Christine Lagarde has also been another party clamoring for rules in the space for a while. She recently mentioned that crypto has no worth, with another council member saying that the gains in the sector are not real. There have also been concerns by the central bank in the continent over the deep connection that traditional finance shares with the crypto sector. Recently, a report claimed that investors lost more than €1.3 trillion without risks to their stability.