European officials are preparing to enter talks in April, with industry observers saying the talks could shape the future of cryptocurrency oversight, CoinDesk has learned. This was revealed in the documents obtained.
The “non-paper” is an unofficial document of unknown origin shared between EU institutions in closed-door negotiations, which explains how the next meeting of the Financial Services Commission (FSC), made up of high-level representatives, will take place in April. It shows what will be discussed. Opinions from the bloc's 27 states and its executive body, the European Commission.
According to the paper, the FSC aims to foster policy coordination between EU countries, with member countries on their priorities and challenges for the next five years in digital finance, sustainable finance, competitiveness of the EU financial sector and economic security. They say they are seeking feedback from the government. Digital finance includes crypto assets and service providers. Robust new lawhas topped the list of topics to be discussed.
“A document like this that highlights the EU's priorities in the financial services sector is very relevant to the cryptocurrency industry,” an industry source familiar with the matter told CoinDesk.
The document is part of the already passed framework under the digital finance debate, including the pivotal Markets in Cryptoassets (MiCA) Regulation, which establishes a licensing regime for digital asset issuers and service providers to operate across the bloc. It refers to a number of legislative packages. He also cited proposed packages such as a digital euro legislative plan as an example of putting the EU at the “forefront of the world”.
“In this regard, the EU must continue to ensure the proper application of financial services rules and, where necessary, strengthen its supervisory powers,” the document said.
With the adoption of MiCA and the further expansion of the activities of cryptocurrency service providers through various other financial regulations such as anti-money laundering, cryptocurrencies “now become part of the EU’s broader financial industry and It has become a priority for relevant policies,” said an industry source.
The full MiCA is scheduled to come into force in December this year, but the second iteration could see changes to the package, including bringing into its scope things that were left out of the first framework, such as decentralized finance (DeFi). There is a possibility.
“It is easy to imagine that proposals such as strengthening supervisory authority will materialize in a way that will also affect the virtual currency industry,'' added a person involved in the virtual currency industry.
The FSC's scheduled meeting will be held on April 10, and the main findings from the feedback will be presented, the document said.
