The (virtual) towel is burning between the European Union and crypto players, who accuse the old continent of wanting to kill non-fiat currencies under the guise of regulation.
Barely has Europe rejected the MiCA (Markets in crypto-assets) bill, which threatened to ban bitcoin and PoW (Proof of Work), which the European Parliament now plans to implement. places increased surveillance of crypto transactions. A threat to bitcoin, which prompted dozens of companies to send an open letter to the Union’s finance ministers to express their concerns.
Does Europe Want To Regulate Crypto Too Much?
On March 31, 2022, two new amendments were voted on by the ECON (economic and monetary affairs) and LIBE (civil liberties, justice and home affairs) committees of the European Parliament. Intended to authorize the increased surveillance of crypto exchanges, the two texts officially aim to limit money laundering, by obliging companies to identify senders and recipients of their transfers, without minimum value limits, and even when the transaction involves a private portfolio.
More than 40 European crypto representatives have just sent a letter to the 27 EU finance ministers to worry about the consequences of MiCA and TFR.@TheBigWhale_ got it exclusively 🧵 (1/10)
— Raphaël Bloch 🐳 (@Raph_Bloch) April 19, 2022
The problem is that this tightening of crypto exchange conditions is in total opposition with the initial principle of blockchain transactions, which aim for a global and universal dimension. Regulating crypto on a European scale could therefore exclude the old continent from a booming market. It is for this reason that 46 European crypto representatives came together this weekend to send a joint letter to the 27 EU finance ministers. Objective, explains one of his co-signers Raphaël Bloch: “worry about the consequences of MiCA and TFR” for the European market.
What solutions to save European cryptos?
By weighingmore restrictive rules on the crypto sector“, Europe is (again) threatening to kill bitcoin. To avoid the announced death of non-fiduciary currencies, crypto players have solutions: they propose in particular not to apply tighter constraints to digital assets than to traditional currencieswhile creating a “legislation specific to activities related to decentralized finance“.
More controversially, the signatories also ask lawmakers not to integrate the “algorithmic stablecoins and other decentralized stablecoins in the definition of digital asset provided in MiCA“. According to information shared by the co-founder of The Big Whalethe Danish and Irish ministries have already given their support to the open letter. Whether the rest of the European Commission will follow suit remains to be seen.