More than 40 crypto industry executives have petitioned the European Union to refrain from requiring crypto businesses to publish transaction information and to scale down efforts to rein in fast expanding decentralised financial platforms.
The European Union, like other nations and territories throughout the world, is attempting to control the rogue cryptocurrency market. In drafting a set of rules for the $2.1 trillion sector, the EU is ahead of the US and the UK.
Crypto firms requested policymakers in a letter seen by Reuters written to 27 EU financial ministers on April 13 not to go beyond restrictions currently in place under the worldwide Financial Action Task Force (FATF), which sets standards for combatting money laundering.
In reaction to the decision last month, 46 European crypto industry executives and organisations wrote a statement claiming that the plans “would put every digital asset owner at danger” by exposing transaction information and wallet addresses to the public. According to the letter’s organisers, this would compromise crypto holders’ privacy and security.
The EU is also creating MiCA, a broader framework to regulate all issuers and service providers in the EU that deal with crypto assets. The European Parliament just adopted its draught rule, which will now be discussed with the EU’s executive branch and member state leaders.
The letter requested that the EU exclude decentralised initiatives, such as decentralised finance or “DeFi,” from legal entity registration procedures. It also stated that some decentralised “stablecoins” should be exempt from the MiCA regulations.
The letter’s organiser, CoinShares CEO Jean-Marie Mognetti, stated that Europe presently has more complicated crypto legislation than other locations, which has hindered firms from expanding in Europe.