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June 11, 2022

EU To Complete Crypto Regulation Soon

By this month, a recent report suggests, the European Union will have finalized its Markets in Crypto Asset (MiCA) bill.

Legislation establishing uniform crypto regulations across the EU was passed by parliament earlier this year.

When it goes into effect in 2020, MiCA will be the EU’s first attempt at comprehensive crypto regulation.

Euro-politicians will meet twice this month to resolve any remaining issues with the bill, according to a report from Bloomberg.

In the wake of the Terra crash, which sparked calls for greater investor protection in crypto, the bill has been expedited.

Insiders told Bloomberg that lawmakers were still divided over some aspects of the bill, despite calls for a quicker regulatory process.

Stablecoin regulation is a hot topic right now, especially in light of Terra’s demise. Stablecoins are being discussed by lawmakers as a way to reduce their use, particularly outside of Euro transactions. This also includes a limit on how many stablecoins a transaction can include.

As Patrick Hansen noted on Twitter, limiting stablecoin use is an effort to keep the euro and other fiat currencies from being substituted in the EU.

NFTs are also dividing lawmakers, with some favoring their inclusion, while others opposing it.
In spite of the MiCA bill’s decision to drop an environmental impact provision earlier this year, the Bloomberg report shows that lawmakers remain concerned about the space’s environmental impact.

Miners must now provide parliament with additional information about the amount of crypto energy they use. According to a recent poll, more and more governments are taking a closer look at the amount of energy needed to mine cryptocurrency.

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Additionally, anti-money laundering laws are expected to be included in the European Parliament’s bill. Token-based businesses will be required to comply with new reporting requirements, which were approved earlier this year.