FTX collapse shows urgent need to finalise EU crypto rules, says European Commission

The “questionable practices” at now collapsed crypto exchange FTX would not have been allowed to happen under European Union rules that need to be finalised urgently, a senior European Commission official said.

The crash in bitcoin led to a “crypto winter”, which saw the collapse of crypto exchange FTX, and earlier this week cryptocurrency lender BlockFi filed for bankruptcy protection.

The European Union has reached agreement on groundbreaking markets in cryptoassets rules (MiCA) for licensing and supervision, expected to come into effect in 2024 and putting the bloc at the forefront of regulating a sector which has shrunk dramatically.