The European Central Bank (ECB) is expected to issue an urgent recommendation in which it will instruct Eurozone countries to make sure that they begin synchronizing their regulation of cryptocurrencies.
The ECB called the sector a “wild west”, and said that without proper harmonization of regulations, it would be nearly impossible to ensure efficient control.
The European Commission has already introduced a new package of standards that the crypto industry have to adhere to when operating the European Union and in the Eurozone in particular.
Presently, the difficulty of regulating the cryptocurrency market effectively comes from a patchwork of national regulations that do not see eye-to-eye. This will have to change but change on such scale is challenging.
So far, Germany seems to be the most forward-thinking nation when it comes to crypto regulation with the country passing one law after another.
The Netherlands, has focused mostly on making sure that no money laundering is done through crypto projects while Germany sought to embrace the innovative sector.
ECB banking supervisory board chair Andrea Enria cautioned members of the European Parliament they would have to make sure they work together to overcome the differences in national regimes. It will be imperative to find a way to synchronize those differences.
The MICA package, which is supposed to regulate the cryptocurrency industry in a pan-European manner, will take time before it can be implemented in a way that offers good guidance for the industry.
Meanwhile, Germany’s watchdog BaFin confirmed that it has been able to introduce regulation that is “broadly equivalent” to what the MICA package outlines. So far, the regulator is reviewing 20 applications.