Home News EU regulators receive an open letter from crypto companies: “Let’s build a...

EU regulators receive an open letter from crypto companies: “Let’s build a Europe where Web3 can flourish”

1831
0
EU regulators

Forty crypto enterprises signed an open letter to the European Parliament, the European Commission, and other key EU regulators, urging them to establish common-sense regulation, standardised compliance procedures, and a business environment that is open to innovation.

On April 19, an open letter was sent to European Union institutions on behalf of the international Web3 community and “companies across Europe,” which was published by one of the signatories. Some recent EU-level regulatory efforts have alarmed industry players:

“We want to express our deep worry over proposed European Union rules that jeopardise individual privacy as well as digital innovation, growth, and job creation in Europe.”

The cosigners warned that recent suggestions by some European Union legislators, including data disclosure regulations for non-custodial crypto wallets, could make Web3 adoption unduly burdensome for European residents.

The crypto community urged regulators to “not go beyond the FATF Travel Rule requirements for record-keeping and verification by Crypto Asset Services Providers (“CASPs”)” and to “guarantee that decentralised protocols and entities are excluded from legal entity formation and registration.”

European Parliament can outlaw transacting with ‘unhosted’ wallets, crypto advocate warns

Exempting algorithmic or similarly decentralised stablecoins from the proposed EU regulators

Other requests included exempting algorithmic or similarly decentralised stablecoins from the proposed EU regulators on Markets in Crypto Assets, or MiCA, from the asset-referenced token definition.

Pascal Gauthier of Ledger, Diana Biggs of DeFi Technologies, Jean-Baptiste Grafiteau of Bitstamp Europe, Lane Kasselman of Blockchain.com, and others have signed a letter.

The Anti-Money Laundering (AML) regulatory package was approved by two EU regulators on March 31. This bill seeks to amend the current Transfer of Funds Regulation (TFR) to require crypto service providers to “verify the accuracy of [the] information concerning the originator or beneficiary behind the unhosted wallet” for each transaction between a service provider (typically, a crypto exchange) and a non-custodial wallet. Many renowned crypto-industry founders and executives slammed the move, calling the criteria onerous and unworkable.

Previous articleRussia’s Federal Tax Service (FTS) proposes using crypto as a foreign trade payment tool
Next articleCoinbase announces beta of NFT marketplace with social engagement