Crypto Lists has reported on the significant proposed changes in the crypto industry in the European market.
Several players have been affected by recent policies and regulations that expose the anonymous nature of crypto transactions. The European Union has joined several countries and jurisdictions to tame the industry. Proposals on EU crypto regulations have shook the $2.1 trillion industry.
A letter to the EU by crypto business leaders
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In an attempt to mitigate against the impact felt across the industry in Europe, more than forty crypto business leaders have urged the European Union to cease the requirement by crypto platforms, exchanges, and brokers to disclose details over their transactions. The business leaders target to ease attempts to suppress these decentralised financial platforms that have been making significant growth.
A letter has been retrieved and showcases the plight of the crypto business leaders to twenty-seven European Union finance ministers. In the letter, they request the finance ministers not to go beyond the rules set in place under the global Financial Action Task Force (FATF). The task force is responsible for reducing exposure and risk to money laundering.
This comes after EU lawmakers voted to make crypto firms accountable for tracing bitcoin and other cryptocurrencies. This was firmly objected to by crypto exchange firms such as Coinbase Global Inc. They were not up for collection and holding information of users who transact cryptocurrencies on their platform. The letter is perceived to be a response to last month’s vote by the EU lawmakers. Forty-six crypto business leaders emphasised in the letter that the proposals would endanger all digital assets owners. Public disclosure of all transaction details and their wallet addresses is a violation of the owners’ privacy and safety.
In addition to the infringement of anonymity of crypto transactions, the EU had introduced a wider framework. Markets in Crypto-assets (MiCA) regulates and confines service providers and issuers of the EU market dealing with digital assets. The EU parliament has recently approved the draft of the MiCA regulation awaiting negotiation with the EU heads of member states and the executive branch. The letter by the crypto business leaders addressed this regulation as well. The letter requests the EU to factor out decentralised projects from the regulatory requirements of registering as a legal entity. This includes decentralised finance(DeFi) which does not wish to register as a legal entity. Furthermore, it highlighted that particular centralised stablecoins should not fall under the MiCA regulation. This comes on the back of Britain stating it will initiate to impose regulations while targeting a global crypto asset hub.
Support on the letter by the crypto industry leaders
CoinShares Chief Executive Officer ( CEO), Jean-Marie Mognetti, organised the letter by the crypto business leaders to the EU finance ministers. He highlighted that Europe provides a more strenuous environment with complex crypto regulations than other parts of the world. In his view, the complex regulations are limiting businesses from adopting the fast-growing industry and effectively limiting businesses growth in the region. He warns that there should be a balance in protecting innovation in Europe. There ought to be more focus on alignment with the FAFT recommendations. Jean-Marie Mognetti was supported by the chief security officer at DeFi Technologies, Diana Biggs. She was also part of the team that organised the letter to the EU finance ministers. She stated her ambitions to escalate the influence of the European crypto industry to an extent that it affects policymaking in Brussels. She lamented the lack of strong and coordinated efforts across the European industry.
What next for the European Crypto Industry?
Anonymity is a significant selling point in the crypto world. These include crypto wallets for creators of NFTs. The decentralised nature of the crypto industry with its anonymity has left it exposed to criminal activities. Additionally, crypto exchanges lack transparency with a lack of legitimacy. It is the reason behind the campaign to regulate the industry globally. CEO of Wirex, Pavel Matveev, believes it would ensure better business practices and customer experience. He requests that the lawmakers team up with the crypto industry leaders to create the best outcome for all stakeholders.
Other members, such as Michael Kamerman, CEO of the Scandinavian crypto broker Skilling, disagree with the regulations. He agrees with the crypto business leaders that there will be a breach of privacy and safety if the proposals are implemented.
Crypto Lists Ltd issues continuous updates on the resolve of the crypto industry leaders against the EU proposals.