EU Nears Agreement on Crypto Regulations, Report Reveals – Regulation Bitcoin News

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EU Nears Agreement on Crypto Regulations, Report Reveals
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European Union authorities are closing in on a legislative package aimed at comprehensively regulating the European cryptocurrency market and related activities. According to media reports, an agreement on key legislation could be reached as early as this month.

EU crypto law expected to reach agreement by end of June, sources say

Representatives of relevant European Union agencies are reaching consensus on a proposal for Markets in Crypto Assets (MiCA), which aims to introduce union-wide rules for the crypto industry, Bloomberg reported, citing people familiar with the matter.

They chose to remain anonymous, revealing that the French presidency of the European Council and the European Parliament (EP) is now optimistic about resolving the issues holding the draft forward. Negotiators should do so in two meetings on June 14 and June 30.

According to sources familiar with the matter, G-27 member states and parliament remain divided over several aspects of MiCA. These include regulation of crypto asset service providers (CASPs), non-fungible tokens (NFTs) that may be included in the framework, and regulation of stablecoins.

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Officials are still debating how to limit the use of stablecoins in payments. For example, one idea is to put a cap on transactions that are not denominated in euros. It comes after the collapse of the terrausd (UST) algorithmic stablecoin that impacted the crypto market last month. Ensuring investor protection and measuring the impact of cryptocurrencies on financial stability are two other major considerations.

Discussions Continue on Key Crypto Regulatory Aspects

MiCA was first proposed in 2020 and was approved by the European Parliament’s Economic and Monetary Affairs Committee (ECON) in mid-March this year. The package entered the so-called trilogy phase of the European legislative process later that month, during which the final draft must be coordinated between the European Parliament, the European Commission and the Council of the European Union.

A key element of the negotiations is also the need to address the environmental impact of crypto assets, something some European lawmakers insist that new legislation should take into account. The regulations banning energy-intensive proof-of-work mining have sparked a reaction from the Old World crypto community, who complained that it amounted to a ban on Bitcoin. The controversial text has been removed from the draft. France, which currently holds the EU Presidency, is ready to accept the European Commission’s proposal to disclose CASP energy consumption.

The legislatures of EU member states and trade unions are also debating the inclusion of anti-money laundering provisions in crypto legislation. Governments are pushing for a separate set of rules, while European lawmakers are proposing a list of non-compliant CASPs.

tags in this story

protocol, crypto, crypto assets, Cryptocurrency, transaction, draft, EU, european, european, eu, legislation, MiCA, package, proposal, regulation, regulation

Do you want the EU to agree on a draft market for crypto assets by the end of June? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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