While negotiations will take place next week within the European Union, players in the crypto sector have sent a letter to the 27 Finance Ministers of the Member States to alert them to regulations that could jeopardize the future of the crypto sector. industry in Europe.
The future of the crypto industry in Europe on the regulatory grill
The European crypto industry has been rising for a few weeks against a regulatory project that neglects the specificity of the sector to bend it to a drastic interpretation of the recommendations of the Financial Action Task Force (FATF).
In effect, as part of the revision of the TFR directive (for “Transfer of Funds Regulation”) which aims to fight against money laundering on fund transfers, cryptocurrencies are now included in the program. But where the shoe pinches is thatthey receive special treatment. A treatment which goes far beyond the recommendations of the FATFespecially with regard to the famous “travel rule” which primarily affects crypto service providers.
For EU lawmakers approved a proposal on March 31 that would increase requirements for the information providers of crypto assets will need to collect and share for each transaction. According to the new rules, crypto exchanges should record and obtain data for every customer with every crypto transaction. And this, from the first euro, contrary to the general rule which establishes a minimum threshold of 1000 euros.
Wallets for which only the holder holds the private key, the famous ” unhosted wallet” or self-hosted portfolios depending on the terminology to adopt, do not escape this heightened surveillance.
Counteroffensive by crypto players
If by misfortune and ignorance of the cause, these stricter measures than in the world of traditional finance were definitively adopted, they would jeopardize the competitiveness of Europe and would significantly reduce the protection of users whose data could be more easily exposed to the four winds. These are the dangers that the 46 signatories of the the letter . In fact, they call for a european regulation aligned with international standards.
The European Parliament’s proposals, by leading to public disclosure of all transactions and addresses of digital asset wallets, will endanger all owners of digital assets. These proposals, if adopted, will make Web3 excessively burdensome for European citizens and will hamper the adoption and development of this nascent but fast growing segment of our economy.
A welcome concerted action at a time when the European Union is also trying to impose a MiCA regulation not well suited to the cryptocurrency sector. And that keeps hope alive. Because the long time of the legislator can give the opportunity to the actors of the sector to influence the process. And to perhaps succeed in modifying the deleterious provisions “in order to preserve the privacy of European citizens, to ensure a level playing field for European companies and to maintain the global competitiveness of the EU”.
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Call from crypto players for a fair treatment of the sector within the EU – CryptoActu
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