The European Union is approaching an agreement on key legislation to regulate Cryptocurrency A sector that sets common rules for 27 member countries.
France and the European Parliament, now chairing the EU, are optimistic about resolving the remaining issues behind the market for Crypto-Assets (MiCA) packages and reaching an agreement this month, sources said.
Negotiators will meet on June 14th and June 30th to discuss the transaction.
First announced in 2020, MiCA puts European regulators at the forefront of cryptocurrency oversight by creating unified rules across the $ 17 trillion economy. After the collapse of TerraUSD Algorithm Stablecoin last month, issues such as investor protection and the impact of cryptocurrencies on financial stability have become even more urgent.
Member states and parliament are still controversial on some important aspects of MiCA.
Areas of disagreement include whether to include non-fungible tokens in the new set of rules, how to regulate critical stablecoins, and supervision of the largest crypto asset service provider (CASP).
Both sides are also discussing ways to limit the use of stablecoin as a payment method, especially for transactions that are not denominated in euros, by introducing caps.
Parliament is also encouraging the law to take into account the environmental impact of crypto assets, sources added.
Bitcoin mining relies on the use of enormous computing power to process transactions, which consume a large amount of energy.
According to sources, the French president is happy to accept the Commission’s proposal to disclose the energy consumption of CASP.
In addition, Parliamentarians want EU executives to develop technical standards for such disclosure, along with review clauses.
Member states and Congress are also clashing about including a money laundering prevention clause in their MiCA package. Governments believe there is a separate set of rules for it, but politicians want to create a list of CASPs that do not comply with the anti-money laundering rules, sources said.
Updated: June 11, 2022 3:30 am