Mairead McGuinness, the European Commission's commissioner for financial services, financial stability, and capital markets union, is urging global authorities to collaborate to address possible concerns in the cryptocurrency sector.

McGuinness believes the European Union and the United States can help lead the globe in developing a legislative framework for cryptocurrencies that balances the benefits of the cutting-edge technology with the "serious hazards."

The volatility of some assets, the potential of insider trading, the likelihood of Russia using cryptocurrency to escape sanctions, and environmental concerns were mentioned by the EU commissioner.

“A global agreement on crypto should first enshrine that no product remains unregulated. Second, supervisors should collect and exchange information globally. Third, any agreement must protect retail investors. Fourth, the crypto ecosystem should fully integrate environmental considerations.” said McGuinness.

According to the EU commissioner, European regulators have already taken steps to offer a complete framework on cryptocurrency with the Markets in Crypto Assets, or MiCA, proposal, which essentially standardises all laws for crypto service providers across the EU.

She also stated that President Joe Biden's March executive order "maps the way for US regulation of crypto-assets" by establishing a framework for government entities to handle crypto-related policies and enforcement actions.

“We have no time to lose in managing this transformation for the benefit of investors, businesses and wider society,” McGuinness said.

In addition to its work on MiCA, the European Commission has requested input from financial services experts on the prospective implementation of a digital euro. As of April 29, the European Central Bank has commenced experimental development of a digital euro consumer interface. McGuinness stated that the European Commission "stands ready" to introduce legislation to support a central bank digital currency.

Source: Cointelegraph