Under the proposals submitted by EU Parliament Deputy, for MacManus, any cryptocurrency would need authorization issued by a “competent authority” such as a Central Bank.
Since cryptocurrencies began to gain strength in 2014, with a peak in 2017, a big discussion about the regulation of digital assets has also started, a discussion that continues to this day. Recently an Irish politician began calling for regulations to be established and for them to be strict.
The deputy of the European Parliament, Chris MacManus, wants Europe to adopt more strict regulations for cryptocurrencies. He argues that rules are needed to increase the transparency of cryptomarket projects.
Of course, he not only suggested that regulations be tightened but also sent 45 amendments to the European Union, with proposals for the economic bloc regarding the regulation of digital assets.
According to the proposals submitted by MacManus, all existing cryptocurrencies would need authorization issued by a “competent authority”, such as a Central Bank.
This would prevent the proliferation of cryptocurrencies that lack clarity in their goals, technology, and even security.
“Currently, founders of cryptocurrencies simply need to ‘deposit’ a white paper that describes the purpose of the digital asset and its technology, without any scrutiny. These White Papers, under my proposals, would also need to have much more detail and transparency.”
The Irish politician also touched on the subject that has been the great spotlight of the crypto market: the energy consumption of cryptocurrencies and their environmental impact.
MacManus believes state authorities also need to consider the environmental impact of cryptocurrency projects before approving their creation, with a focus primarily on cryptocurrency mining.
With these proposals, cryptocurrencies in the European Union would be totally controlled by the economic bloc, something that goes directly against what the crypto market believes.
But it is noteworthy that, for now, the proposals have only been submitted for consideration by the EU, this does not mean that they will become de facto laws.
Anyway, what the deputy asks is not possible, since the cryptocurrencies are decentralized and, therefore, will not work as any pseudo-authority wants.
Recommendations also include stablecoins.
Chris’ recommendations also include provision for stablecoins and their issuers and virtual asset service providers (VASPs). Putting different “rules” for an issuer of a stablecoin (such as Tether, for example) to follow some rules to ensure the safety of its investors.
But specifically, issuers of a stablecoin would be required to maintain cash reserves equal to the full value of their stable currency in circulation to allow currency holders the option to redeem by fiat without presenting liquidity problems.
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