'More Work to Be Done' as EU Imposes Strict New Crypto Regulations
After the EU has reached an agreement on cryptoasset regulation that sets out strict rules for all actors in the crypto market, the crypto industry reminds itself that there's still "more work to be done."
Rebecca Rettig, the general counsel for decentralized finance (DeFi) platform Aave (AAVE) and a board director at the crypto-friendly Silvergate Bank, applauded the effort to “provide clarity in the crypto space,” which she said they have been “requesting for years. But more work to be done.”
She went on to say that given how DeFi will be on the EU’s radar next, the DeFi sector now needs to make sure policymakers understand the technology and the fact that DeFi “must be regulated differently” than centralized crypto actors.
“As the EU delves into DeFi we will collaborate with policymakers to ensure there is a safe & robust system for users while making space for continued innovation in the Web3 world,” Rettig added.
Meanwhile, the new rules constitute a provisional agreement on the long-awaited Markets in Crypto-assets (MiCA) regulatory framework, and hold so-called cryptoasset service providers (CASPs) liable to a much higher degree than before.
Commenting on the agreement, Bruno Le Maire, French Minister for the Economy, Finance and Industrial and Digital Sovereignty, said that the new regulation “will put an end to the crypto wild west,” while confirming the EU's role as “a standard-setter for digital topics.”
Among the requirements that will be placed on CASPs under the new rules is legal liability for the companies if they lose their clients’ cryptoassets. The rule covers all centralized companies in the crypto space, including wallet providers of ‘hosted’ or custodial wallets, but not so-called ‘unhosted wallets’, or
Read more on cryptonews.com
