EU officials are getting closer to an agreement on a legislative package that will comprehensively regulate Europe’s cryptocurrency market. An media report claims that agreement over the core legislation could be reached by this month.
Sources say that a deal on EU Crypto Law is expected by the end of June
Bloomberg, reporting from knowledgeable sources, reported that representatives of European Union relevant institutions are trying to agree on the Markets in Crypto Assets(MiCA), proposal that aims at introducing union-wide rules and regulations for crypto industry.
Choosing to remain anonymous, they revealed that the French presidency of the EU Council and the European Parliament (EP) are now optimistic about resolving the issues that are holding up the draft’s advance. The next two meetings of negotiators, June 14 and 30, should resolve these issues.
According to sources, the members of the bloc of 27 countries and Parliament continue to disagree about several aspects related the MiCA. These issues include how to supervise crypto asset service provider (CASPs), whether non-fungible tokens can be included in the framework, and regulations for stablecoins.
Officials continue to discuss how to restrict the use of unstablecoins for payments. One example is the idea of imposing a limit on transactions not in euros. It comes after last month’s collapse of the terrausd (UST) algorithmic stablecoin which affected crypto markets. Other important factors include investor protection as well as assessing the effect of crypto currencies on financial stability.
The discussion on key aspects of crypto regulatory issues continues
MiCA, which was first presented in 2020, was approved by the EP’s Committee on Economic and Monetary Affairs (ECON) in mid-March this year. The package entered the so-called trilogue stage of Europe’s 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.
The need to reduce the impact of crypto assets on the environment is a key component in negotiations. Some European legislators insist this should be considered when drafting new legislation. Provisions banning the energy-intensive proof-of-work mining sparked reactions from the Old Continent’s crypto community which complained they amounted to a bitcoin ban. These controversial words were removed from the draft. France is currently the EU president and will accept the Commission’s proposal that CASPs be made public about their energy use.
EU members and the union’s legislature are also arguing about the inclusion of anti-money laundering provisions in the crypto legislation. The European legislature proposes a set of standards that are separate from the rules being proposed by the national governments. However, the European parliament is proposing a list for non-compliant CASPs.
What do you think the EU is likely to decide on the Markets in Crypto Assets draft before June ends? Please leave your feedback in the comment section.
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