As a seasoned analyst with years of experience navigating complex financial landscapes, I find the recent developments regarding crypto regulations within the EU intriguing and somewhat concerning. The proposed mandatory external audits of cyber defenses for crypto businesses, while undeniably a step towards enhanced consumer protection, raises questions about the balance between regulation and innovation.
It appears that the European Union’s market regulator plans to propose a requirement for independent audits of cryptocurrency firms’ cybersecurity measures, with the aim of strengthening consumer safety as cyber threats become increasingly common.
The European Securities and Markets Authority plans to propose that crypto companies undergo compulsory independent audits of their cybersecurity measures, as a step towards strengthening consumer protection within the cryptocurrency sector.
Based on an article published in the Financial Times on Wednesday, it’s been suggested that the ESMA (European Securities and Markets Authority) is contemplating tougher cybersecurity measures. They are advocating for changes in forthcoming regulations to require independent audits by third parties, which would evaluate the ability of cryptocurrency companies to withstand cyber assaults.
On the contrary, the European Commission appears to be resisting this action, as per the report’s statement. The commission argues that the suggestions made by ESMA might extend beyond the intended boundaries of the legislature.
Cybersecurity has become a pressing issue for the crypto industry, with hackers stealing almost $1.4 billion, nearly doubling last year’s figures, per data from TRM Labs. Another blockchain forensic firm Chainalysis reported that the number of hacking incidents in 2024 has seen a modest increase of 2.8% compared to 2023. However, the average value lost per hack has surged by 79.5%, escalating from $5.9 million per incident in 2023 to $10.6 million in 2024, highlighting a growing concern as cybercriminals increasingly focus on centralized exchanges.
Starting December 31, crypto companies operating within the European Union will need to obtain licenses from individual member states under the new Markets in Crypto-Assets regulatory framework. These firms must show strong measures against money laundering and financial crimes. Already, this regulatory structure is influencing the industry; for instance, Coinbase has announced its intention to eliminate stablecoins that don’t comply with these regulations from their European platform by the end of the year.
Among industry heads, apprehensions about the rules continue. Paolo Ardoino, head of Tether – the largest stablecoin provider, expressed apprehension over stringent cash reserve conditions, claiming they might pose systemic risks for banks. It’s important to note that this issue isn’t exclusive to stablecoins; Kraken too has announced intentions to halt trading for Monero (XMR) in the European Economic Area, a move similar to those made by Binance and OKX earlier.
Read More
- PYTH PREDICTION. PYTH cryptocurrency
- ‘I Pitched Stargate’s Take On Black Panther’: Christopher Judge Opens Up About His Teal’c Spinoff And Why It Hasn’t Happened
- IMX PREDICTION. IMX cryptocurrency
- MVRDV Designs Solar-Powered “Sports Club in a Shipping Container” For Refugees
- Shah Rukh Khan’s son Aryan Khan reveals his father’s favorite movie and it is not what you think; shares exciting detail about his directorial debut series
- ZIG PREDICTION. ZIG cryptocurrency
- Marissa Bode And Ethan Slater Tell Us The Wicked Song They Can’t Get Out Of Their Heads, And It’s Not The One I Would Have Guessed
- AI Gives You “Certain Superpowers,” But Won’t Make Better Films Without Creators’ Vision: WME Exec
- Remedy Announces Huge Change For Control Sequel As Alan Wake Sells 1.8 Million Units
- Post Malone Announces His Biggest Headlining Tour Yet, “THE BIG ASS Stadium Tour”
2024-10-16 14:31