Regulators around the world are debating how to treat cryptocurrencies. On the one hand, regulators in the US are trying to brand cryptocurrencies as securities. Whereas on the other, some nations are still curious about how to classify them.
In one of the recent studies published by the European Parliament, the lawmakers suggest that cryptocurrencies should be treated by default as securities.
All cryptocurrencies should fall under the classification of transferable securities, says the study
The report suggests that all crypto assets should fall under the classification of transferable securities. This would subject them to the strict governance and authorization regulations applicable to traditional stocks and bonds within the European Union.
However, the determination of their classification would be subject to confirmation or modification by national regulators.
Additionally, the European Parliament study also analyzes the necessity of further adopting EU financial regulation on decentralized finance. In one of the recent updates, the European Union enacted the MiCA regulation. According to the details, the MiCA law was signed by Swedish Rural Affairs Minister Peter Kullgren and European Parliament President Roberta Metsola. This is along with an anti-money laundering regulation.
Furthermore, the significant MiCA proposal aims to harmonize all cryptocurrency laws among the 27 EU member states.