Report Shows European Commission ‘Seriously Doubtful’ About Crypto Asset Markets – Regulating Bitcoin News

The European Commission disagrees with some of the provisions in the crypto regulatory proposal recently approved by the European Parliament. The Brussels administration was unhappy with certain anti-money laundering measures, according to media reports citing unofficial communications.

The European Commission is studying a compromise proposal for EU encryption rules

Upcoming Crypto Asset Markets in Europe (Mika) legislation is facing challenges trilogy stage, less than two months after the European Parliament voted on the draft. Since then, discussions have been held with two other parties in the EU legislative process – the Council of the European Union and the European Commission (EC).

An unofficial letter seen by German crypto news portal bitcoin Echo said the committee disagreed with some points in the text approved by lawmakers and was preparing revisions. In particular, the implementing agencies expressed concern about certain measures aimed at combating money-laundering and the financing of terrorism.

Under these provisions in Article 4 of the MiCA, Parliament wants to prevent EU-licensed crypto asset service providers (CASPs) located in non-compliant jurisdictions or “high-risk areas” or registered in non-compliant countries from levying corporate tax. The committee noted that there are no similar prohibitions in other legal acts. What’s more, such a ban would violate World Trade Organization rules.

The European Commission elaborated that it was unclear why such measures should apply to cryptocurrency providers in particular. The platforms are subject to other EU directives on combating money laundering and terrorist financing, which the Commission insists provide sufficiently strong protections for operators from third countries in high-risk areas. The new rules will only increase the burden on EU authorities.

The European Parliament has also proposed the establishment of a register of non-compliant CASPs maintained by the European Securities and Markets Authority (ESMA). However, the committee’s letter indicated it had “serious doubts” about the feasibility of the proposal. It also believes that if it is necessary to do so, it should be part of general anti-money laundering regulations affecting all financial market participants.

The European Commission also criticized the non-compliance standards used, saying they were unclear. It asked the European Parliament to make improvements in this regard and intends to propose a compromise before the next round of trilogy talks scheduled for Wednesday 18 May.

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committee, Council of the European Union, cryptocurrency, Crypto assets, cryptocurrency, cryptocurrency, draft, European Union, Europe, European, European Commission, European Parliament, European Union, parliament, proposal, Regulation, regulations

Do you want European legislators to take into account the concerns expressed by the European Commission about MiCA? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.




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