Non-EU countries urged to tighten crypto regulation

Non-Schengen countries should ensure stricter oversight of the cryptocurrency industry. This is stated in a report by the European Parliamentary Research Service (EPRS).

“There are still several channels through which the financial system and the EU’s autonomy remain at risk because they depend on the political actions of non-EU countries in the context of the application of MiCA,” the document says.

Potential implications for financial stability, EPRS experts say, include a decline in market attractiveness and widespread use of stablecoins.

The report notes that in the United States there exists a \”fragmented regulatory framework\”, involving various stakeholders at federal and local levels. In the view of experts, this indirectly affects legal clarity and regulatory certainty.

Nineteen jurisdictions have already taken action on cryptoassets. Japan’s legislative framework is regarded by the EPRS as among the strictest.

In April the European Parliament voted for a bill on the comprehensive regulation of the crypto industry, MiCA. The main provisions of the rules, including those concerning stablecoins, will take effect one year after adoption.

DL News reporters studied the attractiveness of European jurisdictions for crypto firms.