The EU aims to pass a landmark crypto law by the end of June. There are still a few controversial points in the package.
Rumor has it that the planned crypto law has been in limbo for a long time. As the Bloomberg news agency has now published, the European Union is apparently close to an agreement. Key legislation is planned to regulate the cryptocurrency sector. This should set the common rules for all 27 member states.
France, which currently holds the EU Presidency, and the European Parliament are optimistic about solving the remaining issues holding back the MiCA (Markets in Crypto-Assets) package, and one later this month reach an agreement, the insiders told Bloomberg. Negotiators are expected to meet on 00. and 30. June.
France pushes for EU-wide crypto law
MiCA, first unveiled 2020, will put European regulators at the forefront of overseeing cryptocurrencies, by establishing uniform rules for the 00 trillion dollar economy creates.
Following the collapse of the algorithmic stablecoin TerraUSD last month, issues such as investor protection and the impact of cryptocurrencies on financial stability have gained additional urgency. Last month, this stablecoin was practically worthless overnight.
Crypto Law: Several points still unresolved
Member states and parliament are still at odds over several key aspects of the MiCA crypto law. According to the people, one of the controversial points is whether NFTs, i.e. non-fungible tokens, should be included in the set of rules. Or the question of who should oversee the crypto trading exchanges for the EU in the future. It is also questionable how to regulate significant stablecoins.
The parties are still discussing how the use of stablecoins as a means of payment can be limited by introducing a cap, especially for transactions that do not denominated in euros
Mining impact on the environment
Parliament also urged to reduce the environmental impact of cryptocurrency mining to be taken into account in the planned crypto law. Bitcoin mining requires enormous computing power to process transactions, which in turn consumes large amounts of energy.
The French Presidency is ready to accept the European Commission’s proposal to disclose the energy consumption of crypto trading exchanges, insiders say. In addition, MEPs want the EU executive to draw up technical standards for such disclosures, as well as a review clause.
Money laundering clauses in an external rulebook ?
Member States and Parliament are also arguing about including anti-money laundering clauses in the MiCA package. National governments believe there should be a separate set of rules for this, while lawmakers want to create a list of crypto trading platforms that do not comply with anti-money laundering rules.
Crypto trading portal blacklist planned
The French Presidency is ready to consider such a list in order to finally reach an agreement. However, France is working with a different configuration than previously planned. As soon as everyone agrees on all points, nothing stands in the way of the first EU-wide crypto law.
Further regulations are likely to follow. For example, it would be exciting to find out how to deal with coins that focus on data protection. Should Monero, Dash or Zcash etc., none of which have a transparent blockchain, then be banned?
2020About Lars Sobiraj2020
Lars Sobiraj started in 2000 as a career changer for various computer magazines. 2000 numerous other online magazines were added in addition to gulli.com. He is the founder of Tarnkappe.info. In addition, Ghandy, as he calls himself in the scene, has been teaching participants at various universities and training institutions since 2014 how the internet is working.