EU plans to finalize two crypto laws by the end of the month – BeinCrypto

The European Union (EU) is accelerating its plans to regulate the digital asset sector. By the end of the month, the European Parliament will finalize two crypto-focused laws.

Patrick Hansen, Crypto Investment Advisor, said that this regulation will have “a huge impact on the crypto market both inside and outside the EU”. The two crypto laws in question are the Crypto Asset Markets Act (MiCA) and the Transfer of Remittances Regulation (TFR).

As a reminder, MiCa is a comprehensive bill aimed at regulating most crypto activities within the EU. The final meeting on this bill will take place on June 30 between the three main EU institutions.

During this meeting, the European Parliament, the Council and the Commission will decide on the subjects that have not been discussed since the launch of the crypto bills.

EU shines spotlight on NFTs

According to Hansen, the discussions will also focus on non-fungible tokens, including the possibility of bringing them into the scope of the MiCA Act. At the beginning, the Commission wanted to integrate them whereas the Council and the Parliament were against. However, it seems that the three bodies have finally reached a compromise.

So far, there is every reason to believe that NFT issuers will be exempt. However, companies that provide NFT services to third parties will be included in the scope of the crypto law. This means that they will need a crypto service provider license to operate.

What about stablecoins?

The discussions will also focus on stablecoins which have been the subject of wide controversy since the crash of Terra (LUNA). Although the main aspects have been finalized, there are still a few elements to be studied.

These include the technical aspects of the main stablecoins and their supervision. Legislators could indeed delegate supervision either to national bodies or to a single European institution.

Another important point, decentralized finance (DeFi) will not be governed by the MiCA law. The commission plans to publish a report in 2023 and create a pilot project for the regulation of this sector.

On the other hand, the Bitcoin mining ban will not be discussed at the meeting. However, crypto service providers will have to follow strict rules when it comes to reporting data related to their environmental impact.

With regard to the transfer of funds, several subjects must be addressed and the negotiations promise to be stormy. So far, lawmakers believe that all crypto transactions (except peer-to-peer transfers) should be included in the scope of the TFR law.

That said, there are still several issues to be resolved, including verification of non-hosted wallets, the obligation to report transfers over €1,000, the anti-money laundering blacklist, etc. So far, it is unclear whether deliberations on the TFT Act will conclude in June.

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EU plans to finalize two crypto laws by the end of the month – BeinCrypto


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