Over 40 crypto related businesses, led by asset manager CoinShares, have come forward with demands for friendlier crypto laws in the European Union.
In a letter to the EU Parliament, industry members have asked the bloc not to mandate disclosures over all crypto transactions, and ease regulatory pressure on smaller crypto players.
In March, the European Union (EU) voted in favor of strict anti-money laundering laws that will require all crypto transactions to be disclosed by exchanges.
CoinShares co-authors a letter to the EU
Jean-Marie Mognetti, CEO of CoinShares, organised the letter and highlighted that Europe has more complex crypto regulations than any other country. This is hampering the growing business in the continent.
According to Reuters, the letter was received by 27 European Union ministers on April 13, 2022. The letter highlighted the point that new regulations must not hinder the global Financial Action Task Force (FATF) imposed rules.
Crypto leaders believe that new policies will dampen the decentralised finance platform’s rapid growth. Among the 40 crypto leaders, CoinShares has welcomed the policy and regulatory commitment. The organisation mentioned that MiCa and TFR reforms are important steps to combat illegal activities like money laundering and terror financing.
EU to ignore DeFi as legal entity
The CoinShares has asked ministers to consider maintaining the balance to ensure that European industries. It added that Data Privacy Officers (GDPR) should be consulted over these reforms. Meanwhile, it also added that the policies should come in line without harming the Web3 users’ privacy. As the new rules comply to disclose all transactions and digital wallet addresses.
Majorly the letter has asked the Union to exclude decentralised projects, DeFi to be listed as legal entities. While it also added that stable cryptocurrencies should not be subject to MiCA regulations.
However, it is kind of late to raise these issues in the Union legislative proceedings. Over the globe, European Union and other countries are working on crypto related regulations. While the European nations seem to be ahead of the major crypto hubs in evolving rules and regulations. The growing crypto industry has a total market capitalization of over $2.1 trillion.