Reject Bitcoin Caging – No sooner had the worry of a (rejected) amendment to the MiCA Law (markets in crypto-assets) – who narrowly failed to do ban bitcoin (BTC) and the proof of work (PoW) – the European Parliament is in the process of introducing hyper-surveillance of crypto transactions. Faced with this unprecedented threat of regulation that would harm the European cryptosphere, many players in the sector have risen up, and transmitted a letter to EU leaders.
A regulatory situation that could delay the crypto sector in Europe
On 31 March 2022, the ECON and LIBE committees of the European Parliament voted in favor of two amendments that could institute increased surveillance of cryptocurrency exchanges.
In the pane of Regulation of fund transfers (TFR) of the European Anti-Money Laundering (AML) regulations, these amendments would require businesses related to digital assets to identify senders and recipients of crypto-transfers no minimum value limit (from 1 satoshi in theory), and this even towards/from private wallets.
It is in this context of frank hostility towards the cryptosphere, that 46 representatives of the sector were keen to defend this new class of assets, driving innovation, by transmitting a letter to finance ministers of the European Union.
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For a reasoned and coherent regulation of Bitcoin and its ilk
As the reports the new crypto-media Big Whale by Grégory Raymond and Raphaël Bloch, this missive asks for “do not impose rules [sur les cryptos] going beyond the recommendations of the Financial Action Task Force (FATF)”. The main objectives are thus to:
“Preserving citizens’ privacy, innovation, growth and job creation by introducing Web3-friendly European laws (…)”
The letter specifies that the latest amendments to the TFR could “wiping out years of work”, as well as compromising the future of Web3 in Europe. Instead, the 46 leaders of crypto companies and associations recommend the Axes of development following:
- Fostering the growth of decentralized technologies in Europe by exempting from registration obligations and functioning of traditional organizations.
- Ensure that the EU applies the same standards to crypto-assets than those provided by the FATF, rather than imposing new ones.
- Exempt the algorithmic stablecoins and others decentralized stablecoins of the definition of a digital asset, as provided for in the MiCA Law.
This grouping of crypto players also evokes the risk of loss of competitiveness compared to Asia and the United States in the race to develop the blockchain Internet. A risk all the greater since Joe Biden’s decree on crypto-assetspublished in March 2022, was intended constructive with the sector and its innovations, again with reinforced surveillance, without hindering their development of the industry.
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