The European Union is close to striking an agreement on how to regulate cryptocurrencies in the region among its 27 member countries.
According to Bloomberg, France (the EU’s chair) and the European Parliament are hopeful that the remaining issues with the proposed Markets in Crypto-Assets (MiCA) regulatory package will be resolved by the end of the month. On June 14th and June 30th, representatives allocated to the topic will meet.
MiCA was used for the first time in 2020, and a single settlement will usher in a new era of European Union legislation. The recent events surrounding the UST collapse, on the other hand, have highlighted the necessity to protect investors and investigate the impact of cryptocurrency on the region’s financial stability. As a result, member states of the European Parliament are striving to reach a consensus on the following contentious issues.
- Stablecoins should be adequately controlled, with the prospect of limiting its use as a payment method by putting a quota on non-Euro transactions.
- Is it necessary to incorporate nonfungible tokens (NFTs) in the new set of rules?
- Significant crypto-asset service providers, such as bitcoin exchanges, are regulated.
- Anti-money laundering regulations are included in the MiCA package.
According to sources familiar with the matter, EU legislators are pushing for a new set of rules that consider the environmental impact of crypto mining activities based on digital assets that employ Proof-of-Work algorithms.
