Upcoming European Union rules known as the Markets in Crypto Assets regulation (MiCA) would have stopped FTX-style mismanagement, officials said on Wednesday – despite lawmaker skepticism over whether the new rules are effective.

The crypto exchange’s collapse has led to calls to toughen or bring forward the rules, which require crypto companies to register with the authorities and meet governance standards common in other kinds of regulated financial firms.

But the European Commission, which proposes EU legislation, said that the rules – which still won’t take effect for a few years – would have helped.

(By Jack Schickler)