Regulating Crypto Conglomerates Requires International Cooperation, Says Bank of France Governor
The head of the central bank of France, Governor Francois Villeroy de Galhau, emphasized the need for international cooperation to regulate crypto conglomerates at a tech forum in Paris. He explained that it is not enough to regulate one legal entity in one jurisdiction and gave an example of U.S. crypto companies operating in various jurisdictions that require collaboration across nations. Villeroy also suggested that a new version of the EU’s recent crypto law may be needed to deal with the issue, which he referred to as “MiCA 2.”
MiCA Legislation and Its Limitations
The European Parliament approved the Markets in Crypto Assets (MiCA) legislation in April 2021, and the EU Council passed the first crypto rules in May 2021. However, the regulation’s scope remains limited as a number of activities, products, and services related to digital assets are not covered. This led policymakers, including the President of the European Central Bank (ECB), Christine Lagarde, to propose the adoption of a ‘MiCA 2’ set of regulations. At the tech forum, Governor Villeroy argued that actors using decentralized finance require regulation to prevent the same risks and enforce the same rules as other financial services.