26th April 2022 > > CC training course & EU regulation.

tl;dr

Module 3 of our online training course is now online, and MiCA is under attack for being sensible EU regulation.

Market Snap (at time of writing)

Market Wrap

Funding rates revert to neutral overnight suggesting short squeeze pain, which always cheers me up no end.

Curious Cryptos’ Commentary – Module 3 of our Curious Cryptos’ training course is now online

https://www.curiouscryptos.com/cccourses

Publication of this week’s Commentary is going to be a little haphazard as I will spend all day tomorrow travelling back to London following the successful launch of our first overseas office in Inverie on the Knoydart Peninsula.

On Sunday I spend all day travelling back again as I will be usefully employed for a change at the next Knoydart SongWriting Retreat:

https://www.theknoydartretreat.com/

This will provide a welcome break from all things crypto. But fear not – I can manage both the commentary and working on the retreat.

Curious Cryptos’ Commentary – EU regulation

As the Market in Capital Assets (MiCA) winds its long and tortuous path through the trilogue involving the European Commission, European Parliament, and European Council, (see CCC 14th and 15th March 2022 amongst others), various bodies and individuals will attempt to subvert its quite sensible and mature approach to cryptos.

First up is Fabio Panetta, a member of the Executive Board of the ECB, who reports to Convicted Criminal Christine Lagarde, whose stance has very slowly been warming on this subject.

Naturally he focuses on stablecoins, the bugbear of all central bankers, as they see them as direct competitors to their own plans for Central Bank Digital Currencies (CBDCs). As ever, Panetta makes the basic mistake of believing that CBDCs are cryptos, when in fact they are most certainly not.

His lack of knowledge about cryptos is burnished when he claims that even countries that ban cryptos cannot ensure 100% compliance with that ban. No-one with even the vaguest grasp of the concepts underlying blockchain tech and decentralisation would ever make such a statement.

His true purpose is revealed when he said:

“We need globally coordinated regulatory action to address issues such as the use of crypto-assets in cross-border illicit activities or their environmental footprint. Regulation should balance the risks and benefits so as not to stifle innovation that could stimulate efficiency in payments and broader applications of these technologies.”

This is disingenuous.

The precautionary principle embedded in most EU law making, and EU regulation specifically focuses on risk, and deliberately ignores evaluating benefits. MiCA is a rare and much lauded attempt to change the dial regarding crypto regulation.

For the benefit of EU taxpayers, it is to be hoped that Panetta and his ilk do not get their way.