What will change in the world of cryptos with the new European directives?

Two European texts that have caused an uproar in the crypto space will have specific implications for investors.

EU Directives Could Put an End to Cryptos

They have captured the enthusiasm of individual investors, attracted by their attractive financial prospects and the record price of Bitcoin. Crypto-currencies that have long caught the attention of insiders have risen to center stage: 8% of French people hold them today, according to estimates by the Association for the Development of Digital Assets (Adan). J

Until now, the industry has operated without uniform regulation, free to control excesses and scams. But two texts currently under study at European level could announce the end of the game. The TFR (Transfer of Funds Regulation) directive and the MiCA (Market in Crypto Assets) regulation promise to revolutionize the course of this ecosystem.

It all starts with healthy aspirations. Like the goal of harmonizing European legislation, cryptocurrency has developed in a disorderly fashion in recent years. France is at the forefront of thinking about these new financial applications.

But ideally, this legal standardization should not be too restrictive, which could stifle or prevent the development of the major European cryptocurrency players. This is already the case today, for example with large trading platforms located abroad.

As members of the European Parliament began the latest round of negotiations on the controversial Transfer of Funds Regulation (TFR) last Thursday, the crypto industry is hoping to have an influence on the wording of the proposed law.

The legislation could endanger many cryptocurrency exchanges within the EU, paving the way for a crackdown on “non-custodial wallets” (the term institutions use to refer to regular wallets), which has little impact. ‘impact. The functioning of these exchanges is linked to daily reality.

At this stage of the legislative process, informal tripartite discussions may result in the EU institutions reaching a provisional agreement on draft legislation. A possible agreement would be informal and would have to be formally ratified by three bodies: the Parliament, the Council of the European Union and the European Commission.

Admittedly, the regulatory debate has taken a strange turn lately. Negotiations suddenly accelerated, as fueled by the Digital Services Act, new European regulations supposed to bring the web giants into line.

Ledger spearheads crypto companies

Two legislative projects dedicated to crypto-assets, MiCA (markets) and TFR (remittances), seem to be moving quickly. So much so that the global blockchain ecosystem is focused on the quality of regulations that European institutions will produce prematurely.

“The alarming, last-minute proposals for MiCA and TFR risk derailing years of preparatory work and the future of web3 in the EU,” some 50 international crypto players urgently warned in a joint letter. sent to European decision makers.

Pascal Gauthier, CEO of e-wallet maker Ledger, is one of the proposal’s most vocal critics. He warned that the TFR could shape Europe’s sovereignty and competitiveness in the digital world. The day before the start of the latest round of talks, his firm released a policy proposal calling on the EU to seize the Web 3 revolution and avoid misleading regulation.

In order to fight against money laundering and to protect consumers against possible scams, European money transfer regulations have mistakenly attacked the blockchain. Cryptocurrencies are still clouded by their image as the “currency of criminals” and represent only a small part of money laundering activity worldwide.

Also, according to Ledger, the surveillance put in place violates the privacy of users. As for data collected in this way, it could be hacked like other classified information before it, putting people at even greater risk.

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What will change in the world of cryptos with the new European directives?


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