of crypto regulations in Europe continue to be modified with the possible expulsion of a certain category of land.
Crypto regulations say goodbye to private tokens
As we get closer and closer to the release of MiCa law scheduled for 2023, regulators are still looking for the text to finalize it. If the latter had previously agreed on a version, some recent modifications are planned to allow an ever closer monitoring of the use of cryptocurrencies in Europe.
Indeed, some MEPs, under the impetus of Czech officials presiding over the debates, would like to stop using and owning cryptocurrencies while allowing them to remain anonymous. Thus, tokens encoding sender and receiver addresses, such as Monero or Zcash, would simply be banned by the European Union. Neither banking institutions, trading platforms nor individuals will have the right to take shelter behind them. In other words, the goal of the MEPs is simple: to prevent users from bypassing the supervision and tracking of transactions using private currencies.
Therefore, it seems that only pseudonymous cryptocurrencies will have the right to be used as they do not challenge the regulators’ right to control. At the moment, the ban on anonymity-favoring coins is only at the proposal stage. Both the European Parliament and the European Commission should examine the problem in the coming days. However, it is very possible that this initiative will actually be approved as it would allow the MiCa law to apply in all situations. However, European regulators have not yet commented on crypto mixer or open source exchanges whose transactions are processed internally. Therefore, anonymity has not completely disappeared in the present time.
FTX’s collapse just gives regulators a hard time
The European Union aims to finalize its MiCa law as soon as possible, but this was without consideration the decline of FTX that came to question the entire crypto ecosystem. The stock exchange, which was considered the safest in the industry, caused a stir when all the problems of its management were revealed and went into bankruptcy. While Binance CEO Changpeng Zhao is already announcing new measures that all players must take to protect their users and prevent further mishaps like this, regulators feel compelled to follow suit. Indeed, many crypto figures are calling for a review of the current regulations in favor of more precise rules and above all more difficult.
According to comments made by a member of the European Parliament for Bloomberg, the European Commission remains on the lookout for all news related to the FTX case. Although this incident has no consequences on the finalization of the MCA law, which means that it will be adopted as it is after the last negotiations in November, the European Union is already preparing to modify the latter if necessary. of conclusions which will emerge from the collapse of the Sam Bankman-Fried empire will indeed have an impact on crypto regulations, but it won’t be immediate. However, industry players can brace for further changes in the coming months.
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