Jag Kooner, Head of Derivatives at Bitfinex, has stated that the fate of crypto could be decided by the candidates who win the 2024 EU elections.
With the upcoming European Union Parliamentary Elections, slated to take place from June 6 to June 9, 2024, closely monitored by the cryptocurrency community are possible regulatory modifications. Bitfinex Derivatives Head Jag Kooner underscored the profound ramifications these elections could potentially impose on the trajectory of cryptocurrency regulations in the European Union.
Kooner highlighted the potential for stricter cryptocurrency regulations if political parties shifted to the right. In contrast, a pro-crypto parliament could accelerate the adoption of regulatory measures such as the Markets in Crypto Assets (MiCA) framework.
Kooner stated, “A shift to the right could result in stricter crypto controls, whereas a pro-crypto outcome could expedite the enactment of supportive regulations such as MiCA.”
MiCA’s Critical Function in Cryptocurrency Regulation
Crypto Assets (MiCA) markets are positioned to emerge as the EU’s all-encompassing regulatory framework for cryptocurrencies. This development is anticipated to bestow legal lucidity and potentially spur increased investment. According to Kooner, the degree of promptness and zeal with which these regulations are implemented will be determined by the outcome of the elections.
“Implementing the MiCA regulation is heavily dependent on the forthcoming elections.” “MiCA’s objective is to establish a unified regulatory framework for cryptocurrencies throughout the European Union, which could potentially attract more investment and provide legal clarity,” Kooner continued.
A facet of the European cryptocurrency market worth mentioning is the performance of bitcoin exchange-traded products (ETPs). Despite $506 million in outflows from these ETPs since the beginning of the year, bitcoin’s price has increased by approximately 40% due to inflows into spot bitcoin exchange-traded funds in the United States. European bitcoin ETPs held roughly $6.4 billion in assets in late April, while US funds had $53.5 billion.
Consequences for the Cryptocurrency Market
The global cryptocurrency market is anticipated to be substantially impacted by the EU election results. MiCA regulations, which go into effect in 2024, apply to a wide range of crypto activities, except non-fungible tokens (NFTs) and digital currencies issued by central banks. MiCA, which strives to balance market expansion and consumer protection, may serve as a model for other regions.
The implementation of comprehensive crypto laws by the EU, the first significant jurisdiction to do so, will examine the applicability of conventional financial principles to digital assets. MiCA, according to analysts, is an imprecise framework potentially groundbreaking in global cryptocurrency regulation.
