Crypto Businesses Stand Up to Harsh Regulations Proposed by EU Policymakers

Reuters has reported that on April 13 more than 40 cryptocurrency companies sent a letter to 27 finance ministers in the European Union to ask that the regulations do not exceed those that have already been enforced by the FATF; these are to prevent money laundering.

The letter was organized by the head of CoinShares, Jean-Marie Mognetti, and the CSO of DeFi Technologies, Diana Biggs.
Mognetti told Reuters that EU rules for regulating digital assets are harder than in other countries, and this prevents crypto businesses from expanding in Europe.

EU rushes to bring crypto industry to heel

The European Union, following the example of other jurisdictions around the world, intends to come up with severe regulations for the cryptocurrency space, which has been growing and expanding at a high pace recently.

At the moment, the EU has left the U.K. and the U.S. behind in the development of regulations for the crypto industry with a $2.1 trillion turnover.

In March, European Union lawmakers voted for new rules that would allow for tracing transactions that carry Bitcoin and other digital currencies. These rules, if implemented, would force crypto exchanges and other companies in this space to collect and hold information regarding participants in crypto transactions, as well as their personal data.

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Crypto industry rises against regulation tightening

After the April vote, 46 crypto leaders and businesses from the EU signed a letter stating that the proposed regulations will impose risks on each owner of cryptocurrencies since all details of transactions and addresses of wallets would be disclosed and open to the public. The letter stated that, in this case, the privacy and safety of cryptocurrency owners will be compromised.

The aforementioned letter from the crypto space also asks to free DeFi platforms from registering as legal entities as part of the MiCA regulatory framework, whose draft the EU parliament greenlighted last month.

Crypto leaders and businesses have also asked in the document that certain stablecoins must not be included into MiCA.