19 April 2023

Opening remarks by Commissioner McGuinness at the European Parliament plenary joint debate on crypto-assets

We are putting in place comprehensive, tailored rules for crypto assets in the European Union.

No one in this House I think questions why these new rules are absolutely vital for the financial system.

And as we have seen in recent months, stringent rules and supervision are very much needed.

Because we've had the collapse of projects such as FTX, Terra Luna, Celsius and Voyager.

We've seen many retail investors, lured in by false promises or false hopes, losing huge amounts of money.

And while the crypto market may be too small to trigger systemic risks, we do know there are increasing links between crypto markets and traditional financial services.

So now to a few elements of our new rules.

Firstly, MiCA will bring crypto markets into the regulated space by addressing risks related to consumer protection, market integrity, and financial stability.

It will also provide legal certainty for market participants that will be able to continue to innovate, in a safe environment.

Secondly, it will introduce rules to prevent market abuse of crypto markets, such as market manipulation.

And we are bringing crypto-asset service providers into the scope of anti-money laundering rules.

Third, under MiCA, crypto-asset service providers – like wallet providers or exchanges – that serve EU customers will have to be established in the EU.

And they will be authorised and supervised by national supervisory authorities.

MiCA will allow EU-authorised crypto-asset service providers to passport their services throughout the European Union.

In return, these operators will be subject to stringent prudential and conduct rules, in addition to rules against insider trading and market manipulation.

Crypto-asset service providers will also have to disclose the environmental impact of crypto-assets they offer to customers.

Fourth, the Transfer of Funds will require all crypto-asset service providers recognised under MiCA to include information about the sender and beneficiary with crypto-asset transfers.

This is in full compliance with the Financial Action Task Force international standards on crypto-assets.

Overall, we are putting safeguards in place that would prevent companies active on the EU market from engaging in some of the practices that led certain crypto-asset operators to collapse in recent months.

After your vote tomorrow, we hope final Council approval and the final signature by the co-legislators will soon follow.

And we hope for publication by the end of June and entry into force in July 2023....

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