In legislative terms, the world of cryptocurrencies is still changing. And as the dust from the FTX collapse settles, MEPs (members of the European Parliament) are wondering exactly how to deal with this wild west of finance and technology.
There is an element of political drama in the mix. On December 9, Eva Kaili, the so-called "Crypto Queen" of the EU Parliament, was arrested on corruption charges that have rocked the 27-member bloc. Police raids seized phones, computers and cash worth 600,000 euros from Kaili and three others, who have since been charged with corruption. Prosecutors suspect that Kaili took illicit funds to lobby on behalf of Qatar, the recent host of the soccer World Cup.
Several hundred thousand euros were found in a suitcase in a Brussels hotel and 150,000 euros in Kaili's apartment. Police searched 19 residences and Kaili's father was among those arrested. Since then, her family assets in Greece have been frozen.
kylie has fired the corruption allegations, saying he is innocent and "has nothing to do with Qatari bribery."
While his arrest has captivated EU politicians and observers, it also presents another uneasy association with the crypto industry. Following the collapse of Terraform Labs and FTX, the average viewer can be forgiven for thinking that the industry is full of crooks. The arrest of Eva Kaili only adds to that ugly image.
It doesn't help that she was one of the best in the industry. most trusted advocates.
2023 will be a pivotal year for EU cryptocurrencies
Kaili was also one of the few cryptocurrency advocates in the Left politics. She was also a senior member of Parliament, serving as one of the fourteen vice-presidents from January 2022 until she was arrested and charged with corruption in December 2022. Former TV presenter Kaili was also considered one of the most glamorous lawmakers in the continent. Tabloid newspapers have referred to her as one of the sexiest politicians on the bloc.
“She was a cheerleader, but already quite isolated on the left side of the political spectrum,” said Dutch socialist Paul Tang. POLITICAL. "The next cheerleader needs to be squeaky clean if there's a lesson to be learned from this."
The coming year will also be crucial for crypto companies, lobbyists and advocates. He Markets in crypto assets (MICA) harmonizes the rules for crypto assets across the block, establishing a common standard. During the adaptation period of 12 to 18 months for MICA, the regulation will take effect by the end of 2024 at the earliest. However, the French financial regulator has already requested stricter rules.
On January 9, Marie-Anne Barbat Layani, president of the country's Financial Markets Authority (AMF), wants to require licenses for registered companies crypto companies. “The AMF, like the parliament, calls for an accelerated move towards a compulsory licensing regime for unregistered providers” of crypto services, Barbat-Layani told a event.
France is unlikely to be the last to require similar regulations in the bloc. Calls within the European Parliament for a similar formalization are likely to increase.
Other MEPs have a lot to say about cryptocurrencies
One of the MEPs with the loudest voice in the cryptocurrency industry is the centre-left Dutch MEP Paul Tang. He has fiercely advocated for stricter scrutiny of non-hosted (or non-custodial) wallets. In his opinion, the identity of the non-housed briefcase the owners needed verification to prevent the money from falling into the hands of criminals.
Tang has also flagged coordinated "smurfing" as a risk. Smurfing is the practice of dividing a large sum of money into multiple smaller transactions to avoid regulatory scrutiny.
in a twitter thread In March of last year, he said:
“These are important tools to combat money laundering/terrorist financing. Some cryptocurrency lobbyists will not like the extra work. But being part of our society comes with obligations. Banks are already fighting criminal money. Crypto brothers should get ready for the plate and do it too.”
However, last July, Tang and his colleagues failed to include non-hosted wallets in money laundering checks. He said CoinDesk at the time that “We cannot simply focus on the regulated sector while keeping the back door open to large anonymous crypto flows.” Over the course of 2022, Tang was often subjected to vitriolic abuse by members of the crypto community due to his campaign.
Balancing consumer protection and innovation, say MEPs
An MEP with a possibly more balanced outlook is Lidia Periera, a Portuguese MEP who also hails from the centre-right. Pereira, who is 31, has previously highlighted cryptocurrency's young user base as a reason to take the industry seriously. Her view is that the EU must balance consumer safeguards and maximize opportunities. She told the video series A technological look: “On the one hand, we have to provide for the protection of investors. On the other hand, we have enormous potential to take advantage of innovation in the European market.”
We can't just be “on one side of the barricade,” he said.
Dr. Stefan Berger is another candidate to be the leading cryptocurrency voice in parliament. Like Pereira, his views are moderate and pro-crypto. The German MEP generally favors a balance between clear and fair regulation and the promotion of innovation. He previously blogged about the need for a Euro CBDC and for the EU to be a crypto-friendly environment.
“A digital euro would complement cash, not replace it,” he said. saying. “Europe must set standards instead of following those of others, and a digital euro would be the proof of progress and integration in Europe. Meanwhile, the monetary authorities are called upon to rebuild confidence in the financial system”.
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