The EU Is About To Agree On A Uniform Crypto Regulation For Its Members

The EU Is About To Agree On A Uniform Crypto Regulation For Its Members

June 12, 2022 0 By Jeanine Sanchez

The European Union is close to developing a uniform bill on crypto regulation among its 27 members. A Bloomberg report claims that France (the head of the union) and the European parliament are hopeful of resolving the finer details of the regulation before this month ends.

Some of these finer details are contained in the proposal submitted by the markets in crypto-assets (MiCA). Those who will decide on the proposal will meet on June 14 and June 30, 2022.

EU Wants To Make Final Decisions About Nfts, Stablecoins, And Large VASPs

The EU launched the MiCA two years ago. Its primary objective was to develop a new and uniform crypto regulation among European nations. Recently, the EU had to push MiCA to fasten the completion of the proposal. The push became necessary following the crash of the Terra network, including its stablecoin (UST).

The EU believes that developing this proposal will provide better protection for crypto investors. Also, they would be able to regulate the effect of crypto on the financial systems across European nations.

Below are some finer details the EU proposes to discuss during its next two meetings.

  • Stablecoin regulation. The EU would discuss preventing the use of stablecoins to settle financial transactions. Hence, It might likely introduce a limit for transactions not domiciled in the Euro currency.
  • NFTs. The EU would vote on the inclusion or non-inclusion of NFTs in the crypto bill.
  • VASPs. The EU would discuss whether it needs to develop a committee to oversee the services of large virtual asset service providers (VASPs).
  • AML. The EU intends to include anti-money laundering policies into the MiCA crypto bill proposal. Thus, preventing money laundering through cryptos.

Assessing The Effects Of Crypto Mining On The Environment

Those close to the matter reveal that the EU plans to add a new policy to the existing proposal. This additional policy will be on the effect of crypto mining on the environment, especially for pow networks.

As previously reported, the European parliament couldn’t get enough votes to ban Bitcoin mining outright. Also, there is an ongoing trialogue discussion with EU lawmakers over the clampdown on crypto transfers involving unidentifiable parties.

French Lawmaker Calls On EU To Adopt A Clear Crypto Strategy

Vocal French lawmaker and crypto advocate, Pierre Person, has reiterated the need for the EU to embrace the fast-rising crypto market. He said this adoption would enable the continent to become a blockchain and crypto development hub. Person shared his opinion by releasing a 188-page document earlier in the week.

According to him, the EU needs to be more proactive about digital assets and not develop an indifferent attitude about this industry. However, Person agrees with the idea that there is a need to ban all crypto mining operations that use fossil fuels.