In recent news, 46 European crypto firms and groups have written to the Ministers of Finance of 27 European nations, urging them to relax some of the country’s regulatory restrictions for the cryptocurrency sector. For instance, they requested that decentralized finance initiatives be exempted from the obligation to file as legal organizations before they are allowed to operate.
Letter From The Cryptocurrency Industry To Policymakers At The EU
According to a report from Reuters, 46 European cryptocurrency firms and groups have addressed a petition to the 27 finance ministers of the EU questioning the transparency rules of cryptocurrency transactions.
Several firms and groups wrote to EU officials on the 13th of April, asking them to guarantee that their laws do not go beyond the current norms, which are already following the criteria established by the FATF (Financial Action Task Force).
Some individuals have voiced concerns regarding the laws forcing cryptocurrency enterprises to gather details on the persons engaged in trading and using digital currencies. For instance, they requested the EU to exempt decentralized initiatives, such as Defi, from the obligation to identify as legal entities. Moreover, they pointed out that some stablecoins must not be liable to the MiCA legislative structure, which governs the crypto-asset market.
The ideas that would lead to the public release of transaction information and crypto wallet addresses “would put all owners of digital currencies in danger since it would reduce the privacy and security of crypto holders,” the letter added.
Following a vote in the European Parliament in March, the MiCA law was given the green light without including a measure that might have prohibited the usage of proof-of-work-based digital currencies. The EU established the MiCA to govern all service providers and issuers of cryptocurrency in the European Union.
Supporters Of The Petition
One supporter of the letter, Jean-Marie Mognetti, the Chief Executive Officer of Coinshares, said that European cryptocurrency rules are presently more complicated than those in other nations. She emphasized that corporations have been discouraged from growing in Europe due to the stringent regulations in the continent.
Another organizer of the letter, Diana Biggs, who works as the chief security officer (CSO) of Defi Technologies, expressed her thoughts as follows:
“It is clear that there have not been sufficient or coordinated efforts throughout our sector in Europe.”
The recent legislation by the EU requesting crypto firms to disclose the information of cryptocurrency transactions is going against anonymity which is a major characteristic of digital currency. It is uncertain if the international body will go back on its decision, but the crypto community hopes for the best.