Some hope the long-awaited new EU law will help the bloc attract innovative digital companies, but the bloc may struggle to compete with the new crypto-friendly US administration.
The EU’s much-hyped new cryptocurrency laws will come into force in just a few weeks, but lawmakers in Brussels are already wondering whether they will lose out to Donald Trump’s new administration.
New EU crypto framework, keep the markets under controlEnforcing financial style rules to protect investors who might otherwise fall victim to fraudsters or market manipulation.
Some argue that this added reliability It can contribute to the EU’s leadership in the innovative sector, but US federal government about to become even more crypto-friendly It starts in January.
President-elect Trump promised his government would have a strategic Bitcoin reserve, triggering news of his victory in early November cryptocurrency price is at an all-time high. This comes as the industry prepares for the arrival of Mica, the EU regulation on crypto asset markets, which will come into full force on December 30.
“In a few weeks, Cryptoasset ecosystem will become part of the EU regulatory and supervisory frameworkMarcel Haag, Deputy Director-General of the European Commission’s Directorate-General for Financial Services, spoke to a largely crypto-industrial audience in Brussels on Thursday.
“The EU has become a world leader. Clear and predictable regulatory framework to enable innovation“While protecting consumers and financial stability,” Haag said, adding: “Looking forward, the EU needs to work to maintain this leadership.”
La Mica requires providers like crypto exchanges to register with authorities and comply with minimum standards to segregate assets and prevent the use of privileged information. Other provisions regarding stablecoins (cryptocurrencies tied to the value of assets such as gold or the US dollar) came into force in June.
Transatlantic rivalry
Lawyers argue EU laws could help the fledgling industry, but some lawmakers are now worried about possible competition from across the Atlantic. “The cryptocurrency industry was attracted to Europe due to the stability and predictability of the rules,” said Ondřej Kovařík (Czech Republic/European Patriots).Traditional banks with banking licenses have everything they need in Mica to issue stablecoins“.
“If conditions change on the American side, then I think the United States could become attractive again,” he said. He states that he needs Cutting non-digital friendly financial lawsand Mica’s overreserve and redemption stablecoin rules — and expects the issue to be part of the first talks with a new Trump administration. Other MPs are optimistic about this issue Mika could help Europe seize opportunities missed for decades.
“This has provided a space for new technologies to develop, so if we miss web one and web two… we could be on web three,” Mika said, referring to successive waves of digital innovation: birth of the internetThe emergence of technology giants such as Google and Facebook and blockchain technology.
afraid of this More positive US policy could strengthen dollar trade market dominanceIt replaces European currencies and adds to arguments in favor of the bloc having a digital euro.
“With Trump’s victory, stablecoins will grow, so The importance for the ECB (European Central Bank) is to have sovereigntyhe said. “We need an extra tool in the ECB’s bag.”
lose the north
for others Focusing on cryptocurrencies like Bitcoin misses the point. “When we talk about what Trump has in mind, we are talking about cryptocurrencies,” Mathieu Michel told Euronews, but the Belgian minister is in favor of analyzing other uses of the technology.
“The way I define blockchain is that it supports more public applications, regulated applications in a way that provides transparency and security,” said Michel, the federal government’s secretary of state for digitalisation.For governments, Blockchain is more important than crypto assets“.
Interested in something? New public infrastructure called “Europeum” – a pun on the name of the well-known Ethereum blockchain – according to him, this could support online services such as identity management and make it easier for citizens to change their driver’s license online, for example.
ADVERTFor some, These centralized plans are a far cry from cryptocurrencies’ promise of freedom of action.A technology that is expected to allow interaction without intermediaries such as banks or governments. “This may seem a bit contradictory,” Michel said, but he hopes it’s true.Combining innovative technology with security regulations can “reconcile two worlds”.
