EU Countries Reach An Agreement Regarding Cryptocurrency Adoption
According to reports, the European Union is approaching an agreement about the legal framework for Markets in Crypto-Assets (MiCA). This framework relates to a legislative package that will be responsible for regulating crypto markets and all associated activity in Europe.
The EU is expected to sign the deal this month, according to reports. This action is designed to cover 27 member states and establish the same standards for digital assets that would govern these nations.
Before establishing a compromise, the negotiators must address a number of other crucial concerns. Currently, a great deal is being debated, including choices on the transaction size for dollar-backed cryptocurrencies.
In addition, member states are working on an anti-money laundering regulation that will be introduced to the regulatory framework.
What are the most contentious aspects of this cryptocurrency regulatory framework?
Before reaching a compromise, negotiators are planned to reconvene on June 14 and June 30 to resolve a few issues.
In addition, it has been claimed that the French presidency of the EU Council and the European Parliament has a good attitude toward the concerns preventing the advancement of the text. In spite of this, the 27 member states and the Parliament disagree on a number of these MiCA elements.
Among the contentious concerns are the oversight of crypto-asset service providers (CASPs), the potential inclusion of non-fungible tokens (NFTs), and the regulation of stablecoins.
There are also continuing discussions over how to limit or restrict the usage of stablecoins in payments. This action is being contemplated because of the significant decline of terrausd (UST), an algorithmic stablecoin that has wrecked havoc on the sector.
Protecting investors and keeping an eye on the effect of digital currencies on financial stability continue to be the top concerns.