40+ Crypto Business React to EU Regulatory Frame

Reuters reports that over 40 cryptocurrency firms have written a letter to all 27 finance ministers of EU member states, voicing their concern over recently passed crypto regulatory bill.

According to Reuters, 46 leading crypto business have voiced their concerns, through writing a letter, over EU crypto policy, especially regarding a crypto regulatory bill passed by the EU earlier this month. With 46 people as its signatories, the letter is drafted by Jean-Marie Mognetti, CEO Coinshares, and Diana Biggs, CSO of DeFi Technologies.

Mognetti told Reuters that growth of crypto in the EU states is halted because of their relatively harsh crypto policies, which acts as hindrance for crypto companies to expand in the region.

Earlier this month the EU passed a bill that leveled stringent regulations on the crypto market. The bill proposed that all the EU transactions, carrying Bitcoin or any other digital assets, must be traced. For the purpose of which all the crypto companies operating in the region are bound to obtain and hold customers’ information, even of personal nature.

The letter noted that obtaining and holding information about crypto holders will compromise their privacy, as the information will be publicly available. The letter also stated that DeFi market should not be compelled to register as a legal entity, as proposed by MICA regulatory framework. Letter further noted that certain stablecoins do not fall under the scope of Mica.

Despite, a worsening regulatory environment in the EU, three of the member states, Germany, Netherlands and France are recently ranked as world’s most crypto-friendly countries. With Germany being number 1, Netherlands and France no 7 and 8, respectively. This does show that while the EU does hold a few strings, countries on their own could make a difference.