Forty-six European crypto businesses and organizations have sent a letter to 27 EU finance ministers regarding disclosure requirements for crypto transactions, Reuters reported this week, noting that it has seen the letter.
In the letter, dated April 13, the businesses and organizations asked EU policymakers to ensure their regulations do not extend beyond the existing rules that are in line with the standards set by the Financial Action Task Force (FATF).
They raised concerns about the rules requiring crypto firms to obtain information on parties involved in digital currency transfers. Specifically, they asked that the EU excludes decentralized projects, including decentralized finance (defi), from the requirements to register as legal entities. They also noted that certain decentralized stablecoins should not be subject to the Markets in Crypto Assets (MiCA) regulatory framework.
The proposals leading to public disclosure of transaction details and wallet addresses “will put every digital asset owner at risk” by reducing crypto holders’ privacy and safety, the letter’s organizers noted.
The European Parliament voted to advance the MiCA bill last month without the provision that would have effectively banned proof-of-work-based cryptocurrencies. The EU introduced MiCA to regulate all crypto issuers and service providers in the region.
Coinshares CEO Jean-Marie Mognetti, one of the letter organizers, noted that European crypto regulations are currently more complex than other regions. She stressed that tough regulations have deterred businesses from expanding in Europe.
Another letter organizer, Diana Biggs, chief security officer at Defi Technologies, opined:
There hasn’t been strong enough or coordinated efforts across our industry in Europe.