46 European cryptocurrency businesses and organisations have requested that finance ministers from 27 European countries loosen certain regulatory requirements to the industry. They asked that decentralized finance projects (defi), be exempted. Find out the requirements to register legal entities.
Crypto Industry’s Letter to EU Policymakers
Reuters reported that forty-six European organizations and crypto companies have addressed a request to the 27 EU finance Ministers about disclosure requirements in crypto transactions.
The letter, which was dated April 13th, asked businesses and organisations to ask EU policymakers for guidance on how they can ensure that their rules do not exceed the Financial Action Task Force’s (FATF) standards.
Concerns were expressed about rules that required crypto-firms to provide information on all parties involved in the transfer of digital currencies. They asked specifically that decentralized projects (including decentralized finance) be exempted from EU registration requirements. The decentralized stablecoins of certain countries should be exempted from the Markets in Crypto Assets regulatory framework (MiCA).
The proposals leading to public disclosure of transaction details and wallet addresses “will put every digital asset owner at risk” by reducing crypto holders’ privacy and safety, the letter’s organizers noted.
The European Parliament passed the MiCA bill, but without the section that would have prohibited proof-of-work-based cryptos. MiCA was introduced by the EU to regulate all cryptocurrency issuers in the region.
Jean-Marie Mognetti is the CEO of Coinshares. She was also one of the organizers for this letter. It is because of these regulations that businesses have been discouraged from expanding into Europe, she said.
Diana Biggs chief security officer at Defi Technologies and another letter organizer, opined as follows:
There hasn’t been strong enough or coordinated efforts across our industry in Europe.
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