The cryptocurrency world outside the blockchain is shocked by the Celsius bankruptcy filing, which disclosed the identities of thousands of customers and the details of their transactions. The most jaw-dropping thing is the flow of capital from CEO Alex Mashinsky and other execut

outside of blockchain

cryptocurrency world was shocked by the Celsius bankruptcy filing, which disclosed the identities of thousands of clients and their transaction details. The most jaw-dropping thing is the flow of capital from CEO Alex Mashinsky and other executives, but others are used to the blockchain confidentiality culture of cryptocurrencies, and they want to know why Celsius leaks its client profile. The answer may come down to the mystery of bankruptcy law. Providing a list of creditors is the standard for bankruptcy filings, and if there is no regulation, cryptocurrency customers are just ordinary creditors and must line up with others. The Gramm-Leach-Bliley Act provides privacy rules for regulated financial institutions, but... well, see "absent regulation". This is a time when Congress and state lawmakers are trying to control cryptocurrencies, and it is best to fix this legal regulatory loophole.

has rules better than not

European Council Last week approved the Crypto Assets Market Ordinance, MiCA; it could become law in 2024. The industry isn't crazy about all the proposals, some of which shocked cryptocurrency leaders when they first appeared early this year. But there is also a common perception that in a key cryptocurrency market, there is finally some regulatory clarity, rather than a vague system regulated by law enforcement in the United States.

In the proposal, the European Council said: "A dedicated and unified framework is necessary." The proposal sets rules on different aspects of cryptocurrency, such as protecting consumers, combating money laundering, and ensuring companies are responsible.

• cryptocurrency suppliers will be required to register with EU authorities. They must publish a "crypto asset white paper" that discloses key information about the assets they sell, including "basic technology" and "related risks."
• will have strict guidelines for stablecoins, which is a clear response to the UST-luna crash. This includes strict capital requirements and rules for stablecoins not pegged to the euro and other EU currencies. Stablecoins that are not pegged to the euro may face limits on transaction volume and transaction volume.
• European Blockchain Association and Digital Euro Association said transaction restrictions could have "serious negative impacts". The trade groups warned in an August statement that they "expected to see extreme volatility and massive redemptions".
• But these rules can also support the euro by encouraging stablecoins pegged to the euro. USDC issuer Circle has just launched the euro coin, a new stablecoin pegged to the euro.

Incomplete rules are better than nothing. Cryptocurrencies are fighting back against key elements of the EU proposal as the European Parliament prepares to vote on MiCA.

• Some cryptocurrency companies and leaders believe MiCA is a positive development for an industry that operates primarily in the dark. Bradley Duke, founder and co-CEO of ETC Group, said the EU process provides “seemingly pragmatic and wise regulation.” It also "helps eliminate the myth of cryptocurrency and regulation incompatibleness," said Georgia Quinn, general counsel at
• Anchorage Digital. Anto Paroian, executive director and CEO of
• cryptocurrency investment fund ARK36, said: Yes, some aspects of MiCA are controversial to the cryptocurrency community, but once it becomes law, it will accelerate cryptocurrency adoption by providing regulatory clarity and extensive customer protection to users and investors across the EU. "Cryptocurrencies need a legal air to achieve what it wants to be. Critics still see the industry with skepticism and fear, and they describe cryptocurrencies as a frontier that is unruly. Being able to ultimately operate in a region with clear rules is a big step towards legalization."