EU cryptocurrency companies and groups have contacted the finance ministers of 27 EU nations, requesting that they ease some regulations on the cryptocurrency market. They requested, for instance, that DeFi initiatives be exempt from the need to establish themselves as corporate companies.
Letter From the Cryptocurrency Market to European Legislators
Last week, reports from Reuters indicate that 46 European cryptocurrency companies and institutions have addressed a letter to 27 European finance ministers questioning disclosure rules for cryptocurrency transactions. Companies and groups encouraged European politicians in a letter dated 13th April to allow new laws that don’t go beyond existing guidelines per the FATF’s requirements.
They expressed displeasure with the rules forcing cryptocurrency businesses to gather information on persons participating in digital currency transactions. They requested that the European exempt decentralized initiatives, like DeFi, from the formal entity registration criteria. They also stated that the MiCA legislative structures shouldn’t apply to specific decentralized stablecoins.
The letter’s signatories stated that proposals to make transaction information and wallet addresses accessible would jeopardize the privacy and security of every cryptocurrency owner by lowering cryptocurrency holders’ confidentiality and security.
PoW cryptos were set to be outlawed by EU lawmakers in a vote taken in March, but the clause was removed from the bill’s final version. The EU created markets in Crypto Asset to govern all cryptocurrency issuers and network operators in the territory.
Jean-Marie Mognetti, among the letter’s planners, said that EU cryptocurrency laws are presently more complicated than in other parts of the world. She emphasized that strict laws have stifled company expansion in Europe. According to Diana Biggs, there hasn’t been an adequate or concerted attempt in Europe to combat this issue.
Endorsed Cryptocurrency Alternate Amendment
Hansen went on to say that an alternate proposal proposed by Stefan Berger, a member of the European Parliament, garnered more support. According to Article 10 of Regulation (European) 2020/852, the Commission shall give to the European Parliament and the Council, where necessary, a proposed law to modify that Regulation to include in the European corporate sustainability taxonomy any cryptocurrency mining operations that assist considerably toward climate variation prevention and response by 1st January 2025.
Following the Proof-of-Work-ban votes, Berger announced that Markets in Crypto Asset had won the first phase. He went on to say that by voting in favor of his plan, European lawmakers had cleared the path for future cryptocurrency legislation. He went on to say that by voting in favor of his plan, European lawmakers had cleared the path for future cryptocurrency legislation.
In response to a question about if the PoW ban still has a shot, Hansen clarified: The factions that failed to vote have one final opportunity. For example, via the trilogues, they might block an expedited process for Markets in Crypto Asset and bring the debate to the legislature. They only need a tenth of the EP’s ballots to accomplish so, which they already have. The debate on Proof-of-Work legislation is far from ended, even beyond this Markets in Crypto Asset regulation.