Mining crypto

EU member states could agree on a unified crypto law by the end of June

Key points to remember:

  • The European Union is on the verge of reaching an agreement to regulate cryptocurrencies between its 27 member states.
  • The representatives are due to meet on June 14 and 30.
  • Issues yet to be resolved regarding cryptocurrencies include whether or not to include NFTs in the proposed rules, how to regulate stablecoins, oversight of large crypto-asset service providers, anti-money laundering clauses and the environmental impact of PoW blockchains.

The European Union is on the verge of reaching a unified agreement between its 27 member states on how to regulate cryptocurrencies in the region.

According to a report by Bloomberg, France (which chairs the EU) and the European Parliament are optimistic that the remaining problems of the proposed regulatory package for crypto-asset markets (MiCA) will be resolved by the end of this month. In addition, the representatives in charge of the file will meet on June 14 and 30.

EU still needs to agree on NFTs, stablecoins and big crypto-asset service providers

The MiCA was first introduced in 2020 and a unified agreement will usher in a new era of regulation in the European Union. However, recent events surrounding the collapse of the UST have accelerated the need to protect investors and assess the impact of crypto on financial stability in the region. Therefore, Member States of the European Parliament seek to agree on the following contentious issues moving forward.

  • Appropriate regulation of stablecoins, including the possibility of limiting their use as a means of payment by introducing a cap for non-euro denominated transactions.
  • Whether to include non-fungible tokens (NFTs) in the new ruleset.
  • Oversight of large crypto-asset service providers such as crypto exchanges.
  • The inclusion of anti-money laundering clauses in the MiCA package.

The EU will assess the impact of crypto-mining on the environment

Additionally, according to sources familiar with the matter, EU lawmakers are seeking to push for the new set of rules to take into account the environmental impact of crypto-mining activities focused on digital assets that run on proof-of-work algorithms.