FTX collapse shows urgent need for crypto regulation – MEP MacManus

Sinn Féin MEP Chris MacManus has said the recent collapse of the FTX crypto exchange shows the urgent need for implementation of recently agreed EU regulation (MiCA) on crypto-assets. MacManus was one of the European Parliament’s negotiators on the legislation which is now awaiting final approval following political agreement in July.

MacManus said:

“If anybody needed a reality check of how wild the “Wild West” of crypto trading is, then the collapse of FTX should be a massive wake-up call. FTX was considered one of the more ‘reputable’ platforms and yet has now shown to have been built on sand.”

“As one the EU Parliament’s negotiators on legislation relating to Markets in Crypto Assets (MiCA), I believe it can make a huge difference in taming this unstable market, protecting financial stability and safeguarding consumers. The new rules will bring a level of transparency and regulation. This has been sorely lacking and has left consumers vulnerable when dabbling in crypto-assets especially in the trading of crypto currencies.”

“It also makes some inroads into throwing some light onto some of the more environmentally wasteful processes involved in some crypto-asset mining.”

The Sinn Féin MEP said urgent implementation of regulation must follow.  “I warmly welcome the EU’s actions but action from other global players must follow suit. Any steps that can be taken by national authorities to begin implementing elements of the regulation before 2024 should be considered.”

“In the meantime, the message must be for all those considering trading in crypto-assets, to be aware this means taking risks without the same safeguards and rights that exist in other types of investments.” ENDS