Crypto is mentioned in the coalition agreement of the new German government.

The new German coalition wants to make the "European financial market supervisory statute" applicable to cryptocurrency assets and businesses. Crypto was mentioned in the new German government's coalition agreement, which advocates for a level playing field between traditional finance and "creative business models."

This week, three German political parties reached an agreement on a coalition that would see the left-leaning Social Democrats (SDP), the Green Party, and the right-leaning Free Democrats take power in December.

The coalition calls for a new "dynamic in regard to the benefits and hazards from new financial innovations," such as crypto assets and blockchain enterprises, according to a rough translation of the 177-page agreement released on Wednesday:

"In order to ensure holistic and risk-adequate oversight of new business models, we are adapting European financial market supervisory regulation to accommodate digitization and complicated group structures."

"For the crypto sector, we need united European monitoring." The agreement further states that "we require crypto asset service providers to consistently identify the beneficial owners."

The European Union regulatory authority should "not only look after the traditional financial sector, but also prevent the exploitation of crypto values for money laundering and terrorist financing," according to the text.

Following the German federal election on Sept. 26, the establishment of the coalition allegedly took two months of discussions. It also marks the end of Angela Merkel's 16-year reign as Chancellor, who will be succeeded by the SDP's Olaf Scholz.

The adoption of cryptocurrency is increasing across the European Union.

On the other hand, the European Council, which determines the EU's political agenda, approved the "Regulation on Markets in Crypto Assets" (MiCA) framework and the "Digital Operational Resilience Act" on the continent.

MiCA, in particular, proposes to create a "regulatory framework for the crypto-assets market that fosters innovation and draws on the potential of crypto-assets," as originally developed by the European Commission in September 2020. While the European Parliament must yet ratify it, if it is passed, it will subject crypto asset issuers to more strict regulations, but nonfungible tokens and utility tokens will be exempt from the rule.

The progressive regulatory plan was dubbed the "most crucial one to date for the entire crypto sector" by Reddit member u/BelgianPolitics in the r/CryptoCurrency subreddit on Friday.

At the time of writing, the Reddit user's study had nearly 900 comments and provided a full rundown of the proposed laws under MiCA. The importance of the proposals was stressed by the author:

"Every entity operating in the European Union will be required to respect these rules." However, due to the 'Brussels Effect,' there is a significant probability that these rules will eventually become international standards. While everyone's attention is drawn to the United States and China, the EU is quietly leading the way."


No comments:

Post a Comment

Note: only a member of this blog may post a comment.

Hot Topic

Genesis Rolldrop: Musim Rolldrop Pertama

Mainnet Dymension akan segera diluncurkan, menandai diperkenalkannya DYM, aset asli protokol Dymension. DYM memainkan peran penting dalam ek...

counter, at the bottom of the page, in a table, div or under a menu.