According to Reuters, the European Union is working to regulate the cryptocurrency industry, advocating for relevant cryptocurrency exchange companies to disclose relevant details. Still, it has been rejected by more than 40 cryptocurrency business leaders.
In a letter to 27 EU finance ministers dated April 13, cryptocurrency-related companies pointed out that EU regulation should not go beyond the rules set by the global Financial Action Task Force (FATF), according to Reuters.
FATF stands for The Financial Action Task Force, which is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
U.S.-listed cryptocurrency exchange Coinbase strongly opposes the rules that crypto companies collect information on transactions related to cryptocurrencies.
A total of 46 European crypto industry leaders and organisations wrote in a letter to the EU:
“The proposals will put every digital asset owner at risk” by leading to public disclosure of transaction details and wallet addresses. This would reduce crypto holders’ privacy and safety.”
In the letter, cryptocurrency-related leaders also advocated that the EU should repeal the requirement for decentralised projects, including decentralised finance, or “DeFi,” to register as legal entities.
The UK announced on Monday to accept stablecoins as a valid form of payment and has set plans to make Britain a global hub for crypto-asset technology and investment.
As reported by blockchain.News on April 11, The European Union Council has imposed another round of sanctions on Russia with an extended ban on cryptocurrency-focused transactions for already blacklisted Russian individuals and their relatives.
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