Europe is at the forefront of aggressive regulation of the cryptocurrency industry. The MiCA bill is still being drafted, but is already causing a cold sweat for players in this digital economy. And such incredible proposals as a Proof-of-Work (PoW) ban on Bitcoin, which simply demonstrates the ignorance of those who nevertheless want to control this ecosystem. Vendetta led by European Central Bank (ECB) President Christine Lagarde. The latter is already thinking about MiCA 2, even tougher than its original version.
Governing the cryptocurrency sector is not a smooth business internationally. Some countries are trying to integrate innovation in the best possible way. On the other hand, Europe, in search of the worst offers, is trying to block its path with its MiCA account. To the point that some countries, such as Germany, refuse to join its surveillance demands, which are considered offensive. But obviously that doesn’t stop Christine Lagarde from seeing “more” on the pitch.
Indeed, the current president of the European Central Bank (ECB) is particularly noted for his pronounced hatred of cryptocurrencies and everything related to them. Digital assets that are “worthless” but still need to be regulated as soon as possible. The position was confirmed again last week. This is during a speech before the Committee on Economic and Monetary Affairs of the European Parliament. Because in this case, Christine Lagarde mentioned the need for MiCA 2, “which will have a wider scope and deeper regulation. “The whole program!
MiCA 2 – Return!
All this happened on June 20th. During Christine Lagarde’s speech before the Committee on Economic and Monetary Affairs of the European Parliament. It’s like the President of the European Systemic Risk Board, whose name alone brings cold sweat. An event during which she was invited to talk about cryptocurrencies with MEP Aurora Laluk, also known for her internal distaste for this digital economy. And it is obvious that nothing really positive for this sector could come out of this kind of meeting. But there has also been nothing to suggest talk of a possible MiCA 2, although its initial version is still in European authorities’ drawers.
“We applaud the arrival of MiCa 1. But we encourage you to continue and develop MiCa 2, which will have a broader scope and regulate some of these innovations more deeply in these uncharted territories that pose risks to consumers and where the lack of regulation often makes it possible to hide fraud, manipulation, speculation and criminal activity. »
Because the MiCA bill has not yet entered into force. Indeed, he still walks back and forth through the European administrative convolutions. And this is especially after the rejection of the ban on Bitcoin’s Proof of Work mechanism in March last year. A last minute win before his actual vote. But, apparently, the warning about the extremely liberticidal nature of this project was not heard by the initiators of this repressive masquerade. And this despite the fact that some crypto players sent a letter to European officials. In order to demand “fair treatment for the sector”, which obviously has nothing to do with priority.
MiCA2 = MiCA1 + Bitcoin?
But then how can this MiCA 2 be worse than its original version? At least, except for the eternal refrain about the safety of investors and the highly criminal – and above all contrived – nature of the use of cryptocurrencies. A question that Christine Lagarde cannot help answering during this speech. With 3 specific points that, according to her, require special attention. And this is in order to respond “to the risk of interconnection with financial institutions exposed to crypto assets. »
The first issue under consideration is the staking of cryptocurrencies, that is, the deposit of the latter for a reward in the form of an API. But this obviously also includes lending (loan) made for a fee (fee). Industries that Christine Lagarde considers too booming. And under the influence of significant difficulties at the present time, as is the case with the BlockFi company.
Then comes the issue of decentralized finance (DeFi). “Because when there are no financial intermediaries, the legislation does not work. “A situation that Christine Lagarde wants to end with her MiCA 2. With the possibility, in her words, of including bitcoins that are “not covered by MiCa 1.” . »
Finally, there comes the case of issuing a cryptocurrency, “when there is no identifiable issuer. This applies to many of these digital assets in the DeFi sector, but not only. Because once again, Christine Lagarde refers to Bitcoin, for which, in her words, “this is absolutely true.” Let’s imagine that he may well remain one of the potential targets of this next version of the MiCA bill. Even after the unsuccessful Proof of Work ban…