European Commission Has ‘Serious Doubts’ About Markets in Crypto Assets Draft, Report Reveals

European Commission Has ‘Serious Doubts’ About Markets in Crypto Assets Draft, Report Reveals

The European Commission disagrees with some provisions within the crypto regulatory proposal authorized just lately by the European Parliament. The govt arm in Brussels is sad with sure anti-money laundering measures, in line with a media report quoting unofficial correspondence.

European Commission Working on Compromise Proposal for EU Crypto Rules

Europe’s upcoming Markets in Crypto Assets (MiCA) laws is dealing with challenges within the trilogue stage, lower than two months after the European Parliament voted on the draft. Since then, discussions have been underway with the opposite two events within the European Union’s legislative course of — the Council of the EU and the European Commission (EC).

An unofficial letter seen by the German crypto information portal BTC Echo has indicated that the Commission doesn’t agree with some factors within the texts authorized by the lawmakers and is making ready amendments. The govt physique expresses considerations particularly about sure measures aimed toward combating cash laundering and the financing of terrorism.

With these provisions, present in Article 4 of MiCA, the Parliament desires to forestall the EU licensing of crypto asset service suppliers (CASPs) which are based mostly in non-compliant jurisdictions or “high-risk areas,” or registered in international locations that don’t levy company tax. There is not any comparable ban in different authorized acts, the Commission factors out. What’s extra, such a prohibition would violate the principles of the World Trade Organization.

The EC elaborates that it’s unclear why such a measure ought to apply to crypto suppliers specifically. These platforms are topic to different EU directives on combating cash laundering and terrorist financing, which the Commission insists provide sturdy sufficient safety within the case of operators originating from third international locations in high-risk areas. The new regulation would solely improve the burden on EU authorities.

The European Parliament additionally proposes the institution of a register for non-compliant CASPs, maintained by the European Securities and Markets Authority (ESMA). However, the Commission’s letter reveals it has “critical doubts” in regards to the feasibility of this proposal. It additionally believes that if there’s a want to try this in any respect, it ought to be a part of the overall anti-money laundering rules that have an effect on all monetary market contributors.

The European Commission additionally criticizes the adopted standards for non-compliance, saying they’re unclear. It’s demanding enhancements from European Parliament on this regard and intends to place ahead a compromise proposal earlier than the following spherical of the trilogue talks scheduled for Wednesday, May 18.

Do you anticipate European legislators to bear in mind the considerations expressed by the EU Commission concerning MiCA? Tell us within the feedback part under.

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