Legislators of the European Union (EU) are meeting this week to establish anti-money laundering rules and a new authorization regime for crypto providers. In addition, the EU is also debating whether EU law should regulate the NFT market across all states.
The EU’s stance so far
The EU Commission has certainly taken a stricter approach to NFTs and crypto mining. In fact, commission officials and country representatives will meet on June 30 to complete legislative negotiations. However, many political observers say that this could take longer due to ongoing debates about NFTs.
The European Parliament has already voted for privacy restrictions that will prevent digital assets from being used for human trafficking, drugs and terrorism on 31 March. Topics that are up for discussion include NFTs; NFT marketplaces; transfers to and from unhosted wallets; and crypto mining.
About MiCA
MiCA is the proposed EU regulation on crypto assets. The industry has largely welcomed it, as it would enable crypto companies to access the union’s 450 million consumers.
One of the main MiCA issues is the environmental impact of crypto mining. European Union lawmakers have proposed regulations to decrease carbon emissions. As a result, the industry experts are concerned that this could result in a bitcoin ban. Figures such as Fabio Panetta of the European Central Bank have been more moderate in their response – suggesting an additional tax on proof of work (PoW).
Once there is a consensus on the policy outline, it could take until 2024 for states to implement MiCA. In addition, policymakers are already planning MiCA 2 to tie up any legal loose ends.
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