The cryptographic regulations in Europe they continue to be modified with the possible ban of a certain category of tokens.
Cryptocurrency regulations say goodbye to private tokens
As we get closer and closer to the exit of the MiCa law scheduled for 2023, regulators are still examining the text to finalize it. If the latter had previously agreed on a version, some latest changes are planned to allow ever closer monitoring of the use of cryptocurrencies in Europe.
Indeed, some MEPs, at the urging of Czech officials presiding over the debates, would like to forbid the use and possession of cryptocurrencies that allow you to remain anonymous. Thus, tokens that encrypt sender and recipient addresses, for example Monero or zcashwould simply be banned by the European Union. Neither banking institutions, trading platforms nor individuals will have the right to take refuge behind them. In other words, the intention of MEPs is simple: to prevent users from evading surveillance and tracking of transactions using private currencies.
It would therefore appear that only pseudonymous cryptocurrencies will have the right to be used since they do not challenge the regulators’ right of scrutiny. For now, the ban on anonymous coins is only at the proposal stage. Both the European Parliament and the European Commission are expected to look into the issue in the coming days. However, it is entirely possible that this initiative will actually be adopted as it would allow for the application of the MiCa law in all situations. However, European regulators have yet to comment on the crypto mixers or open source exchanges whose transactions are processed internally. Anonymity has therefore not completely disappeared at the moment.
The collapse of FTX only gives the regulators a hard time
The European Union aims to finalize its MiCa law as soon as possible, but without taking into account the FTX drop which has come to question the entire crypto ecosystem. The exchange, which was considered the safest in the industry, caused a sensation when all its management problems were discovered and it entered bankruptcy. While Binance CEO Changpeng Zhao is already announcing the new measures that all gamers should adopt to protect their users and prevent further disasters like this, regulators feel obligated to follow suit. Indeed, many crypto figures are calling for a revision of current regulations in favor of more precise and above all Harder.
According to remarks made by a member of the European Parliament a Bloomberg, the European Commission remains alert for all the news regarding the FTX affair. Although this incident has no consequences on the finalization of the MiCa law, implying that it will be adopted as-is after the latest negotiations in November, the European Union is already preparing to amend the latter if necessary. The conclusions which will be drawn from the collapse of the Sam Bankman-Fried empire will therefore have an impact on crypto regulation, but this will not be immediate. However, industry players can prepare for more changes in the coming months.
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