The cryptocurrency world is shaken after the collapse of crypto exchange FTX. Now FTX has entered the agenda of the European Parliament. According to reports, the European Parliament will also discuss the bankruptcy of FTX at its meeting for cryptocurrencies on Wednesday.
The AP gathered for cryptocurrencies will also talk about FTX
FTX was the third largest exchange in the world where people could buy and trade Bitcoin and other cryptocurrencies. It was also an important node of the global financial network that underpins the crypto industry. cryptocoin.comAs you follow, the leaked documents have raised questions about solvency. It subsequently declared bankruptcy this month, losing at least $1 billion in client funds.
As you know, MiCA, which is the most important agenda in Europe on cryptocurrencies, is the regulation draft. The collapse of FTX has caused a surge in editing calls. That’s why the European Parliament will hold a meeting on Wednesday on what happened. It is possible that some changes or measures will enter MiCA with the effect of the FTX collapse. In Brussels, EU lawmakers are claiming that the block’s upcoming crypto rulebook, Crypto Asset Markets (MiCA), will prevent future FTX-level scandals.
Brussels thinks it has cracked the code on cryptocurrencies
Center-right MEP Stefan Berger, who leads MiCA through Parliament, says MiCA should be ‘taken as a global model’ for crypto regulation. He also states that he has fully addressed the issue that caused FTX to crash. “This provides internal control mechanisms. It requires proof of good management. It also ensures separation of assets from customers and funds,” he says.
Europe is among the first regions in the world to create a comprehensive law for cryptocurrencies and crypto services providers. The EU therefore sees itself as a leader in regulating new technologies. It also often cites the General Data Protection Regulation and draft artificial intelligence law as examples. A European Commission spokesperson had this to say about the FTX crash:
MiCA consumers will maintain market integrity and financial stability. It will bring crypto-asset exchanges, wallet providers or crypto-asset issuers under EU control.
EU policymakers say they are unaffected by FTX
However, the regulation is expected to come into effect by mid-2023 at the earliest. But analysts claim it already has a deterrent effect. Philipp Sandner, head of the Frankfurt School of Finance and Management Blockchain Center, said:
While MiCA isn’t in effect yet, it’s a harbinger of what’s to come and keeps criminals at bay.
For now, the European Union seems only limitedly affected by the collapse of FTX. European Central Bank Vice-President Luis de Guindos told reporters earlier this month that FTX’s decline was “no surprise”. However, he noted that the stock market’s decline did not resonate significantly in the broader financial markets.
According to crypto data aggregator CoinGecko, the crypto exchange’s clients were scattered around the world. But most users were probably in non-EU countries. The firm selected South Korea, Singapore and Japan as the top three countries to send visitors to FTX’s website. In CoinGecko’s list of 30 countries, only Germany (fifth), Italy, the Netherlands, and France were included. Sandner, from the Frankfurt School of Finance and Management, says:
European citizens were not so impressed. Not many people signed up for FTX. I know hundreds of people in the crypto space and I only know two who are FTX customers. Also, they took their money.
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