MEPs ready to regulate cryptocurrency with EU law

MEPs from the Economic and Monetary Affairs committee (ECON) have voted in favour of plans to regulate the use of cryptocurrencies, including regulating assets outside the EU, supporting innovation, mitigating risks and reducing the ecological footprint of cryptocurrency technology.

A draft text was upheld in the ECON committee with 31 votes for, four against and 24 abstentions. Committee members also voted in support of starting inter-institutional dialogue between the EP, Commission and council the vote passed with 33 in favour 25 against and no abstentions.

The rapporteur for the draft proposal is Stefan Berger (EPP) and the document lays out plans for the EU to regulate how cryptocurrencies will be used and regulated.

The text delves into what proofs will be needed of a crypto-company to operate in the EU and establishes how member states, central banks and the ECB must act with regard to these new currencies.

Part of the justification for amendments to the Commission’s proposal illustrates how crypto-currencies are being taken seriously as something which will form a major part of the future economy.

“Asset-referenced tokens can achieve market volumes which might have an impact on monetary security in the euro area. This should be taken into account by involving the ECB accordingly in the form of mandatory positive certification,” Berger said.

Asset referenced tokens are crypto-assets that seek to maintain a stable value by referring to several currencies, commodities or other crypto-assets, or a combination of such assets.

This draft and others like it that will follow in the years to come will be forging ahead into untravelled territory as regulators seek to allow crypto into the mainstream, without putting the European single market or European priorities at risk.

The next steps are for the Council and Commission to read the amended draft from parliament, suggest their own amendments and vote on it. This will determine whether the draft goes around for further reading and changes or gets favoured and turned into binding law.