In the past weeks, the status of crypto assets in Europe and the main framework of the regulations that may be encountered in the future. European Crypto Asset Markets (MICA) The regulation received final approval from the European Parliament.
EU regulators after MICA ratification cryptocurrency continues to work on new measures to create new rules for the industry and protect the interests of retail investors.
According to the news of Coindesk, the EU’s financial stability monitor European Systemic Risk Board (ESRB) the rapid growth of cryptocurrencies and DeFi expressed his concerns that the sector could pose a risk to the economy.
In this context, he stated that new regulations may be needed to cover large crypto money companies. Christine Lagarde, head of the EU central bank The ESRB, headed by the ESRB, pointed out that leverage ratios in cryptocurrency transactions should also be limited.
“Systemic risks can come on quickly and suddenly. If the rapid growth trends observed in recent years continue, crypto assets may pose a risk to financial stability.
At this point, a clause should be added to MICA, which stipulates that it imposes leverage limits for mutual funds exposed to crypto assets.
It should also limit crypto companies lending tokens to their customers, which is one of the popular ways to place high leverage bets.”
Finally, in the ESRB report, it was stated that although the past 2022 was turbulent for the cryptocurrencies and DeFi sector, the necessary measures should be taken in this context, where systemic results have not yet occurred.
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