Potential implications around financial stability, lower market appeal and mainstream use of stablecoins were the main concerns highlighted by the author of the report.
The European Parliamentary Research Service (EPRS) highlighted the need for tighter oversight from non-European Union regulators to ensure greater stability and development in the global cryptocurrency market.
MiCA implementation timeline. Source: esma.europa.eu
As the Markets in Crypto-Assets Regulation (MiCA) Act continues on the road to implementation by December 2024, an EPRS report cited the need for establishing a tighter regulatory framework in non-EU jurisdictions:
Potential implications around financial stability, lower market appeal and mainstream use of stablecoins were the main concerns highlighted by the report’s authors.
Overview of crypto-asset regulations in EU, the United Kingdom and the United States. Source: europarl.europa.eu
According to the report, the U.S. has a fragmented regulatory landscape, which involves a variety of state-level and federal stakeholders, indirectly impacting legal clarity and regulatory certainty.
Global stablecoin regulation overview. Source: europarl.europa.eu
The report also highlighted the U.K.’s Financial Services and Markets Act and a study conducted for the European Parliament, which expects a significant divergence “over the coming years between the UK and the EU in terms of how crypto-assets are identified.”
On Sept. 18, The Malta Financial Services Authority (MFSA) began a public consultation over changes in its crypto regulations to better align with the upcoming MiCA regulations.
As Cointelegraph previously reported, the revised rulebook proposes changes to the rules for exchanges, custodians and portfolio managers to align with the EU’s MiCA regulations.