According to famous crypto advocate, Patrick Hansen, it is likely that the EU’s next meeting on Thursday will provide comprehensive detail on its MiCA and TFR regulations. The MiCA and the TFR regulations are the EU’s principal crypto regulations. Participants expected at the meeting include the Council, Parliament, and the Commission, the top three EU bodies.
MiCA Updates
The three bodies have discussed almost all the necessary MiCA policies. However, it is yet to discuss whether MiCA policies should include NFTs. After an initial disagreement, all three bodies have accepted that MiCA policies should cover NFTs based on consumer protection interests.
However, Hansen disclosed that MiCA’s NFT scope would only apply to NFT marketplaces and platforms, not NFT issuers. The policy makes it compulsory for high-volume players to have a CASP license. But small volume players would be exempted from such a rule.
Updates Regarding Stablecoins And Bitcoin Mining
The three bodies have concluded on the essential stablecoin policies. For instance, the regulatory body will subject EMT (e-money tokens) and art (asset referenced tokens) issuers to thorough screening. Also, MiCA gives EU nations the freedom to enable stablecoin issuance for huge payments.
The EU bodies are yet to discuss the technical details of important stablecoins. In addition, they would also discuss supervisory infrastructure. It needs to discuss whether the EBSMA, EBA, or the NCA would be in charge. The commission would constitute a particular pilot program to understand the DeFi space better.
Hence, the current MiCA policy won’t cover DeFi. Despite media rumors, it is important to note that none of the bodies are considering issuing a bitcoin mining ban. However, CASP would make thorough disclosure from bitcoin miners mandatory.
Hence, the ESMA would issue details of what is required from each crypto’s miners. There would also be discussions on AML provisions for each of MiCA, TFR, and AMLD. The commission, parliament, and council will discuss the finer details of issues that have been concluded previously.
Hence, they predict that all discussions will end by June 2022 end. However, a formal vote on agreements would still be reached by the parliament at its plenary session before MiCA becomes legal.
Updates From TFR
Hansen stated that there are still a lot of disagreements regarding various issues. Hence, discussions might still take more time before they are finalized. Nevertheless, the TFR has reached a few conclusions. For instance, the TFR won’t apply to P2P transactions.
However, TFR policies cover other aspects of cryptos. Also, the 1,000 EUro limit is lifted under the revised policy. One issue causing lots of disagreements is the verification of unhosted wallets.
The bodies disagree over whether CASPs should be responsible for identifying unhosted wallets. Instead, the council suggested that CASPs should account for AML-related risks. Then, take adequate measures based on the result.
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