EU markets regulator urges for tighter crypto security requirements
The European Securities and Markets Authority urges European Union’s regulators to impose stricter cybersecurity requirements on crypto companies.
The European Securities and Markets Authority will push for tighter cybersecurity requirements for cryptocurrency companies as part of the Markets in Crypto-Assets Regulation (MiCA) rules coming into force in December. The regulator suggested that cryptocurrency service providers should be required to share the results of cybersecurity audits, Bloomberg Law reports.
The regulator communicated its opinion on crypto cybersecurity requirements to the European Commission, the European Parliament and the European Council. The statement suggested that crypto firm assessments should include “checks regarding the absence of penalties also in areas other than commercial law, insolvency law, financial services law, anti-money laundering and counter-terrorist financing, fraud or professional liability.”
Back in April, the European Securities and Markets Authority also issued a warning about the high concentration of trading activity on a limited number of cryptocurrency exchanges — with a focus on market leader Binance.
Not everyone is on boardThe Europen Commission pushed back against the suggestion, claiming that the regulator is overreaching beyond its legislative domain, Financial Times reports. The MiCA rules have been both criticized and praised for being among the most comprehensive and strict crypto regulatory frameworks to date.
The introduction of those new rules in the European Union is expected to deeply change much of the cryptocurrency market. The new rules, which will — among other things — require crypto service providers to register in an EU state, are expected to give advantages to well-regulated traditional finance players.
Late September reports indicated that major stock and cryptocurrency exchange Robinhood and neobank Revolut are considering entering the stablecoin market. With MiCA crypto exchanges operating in the EU may be forced to delist stablecoins from issuers that do not hold the necessary permits — such as market leader Tether.
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