An upcoming round of high-level discussions within the European Union (EU) is poised to shape the future landscape of cryptocurrency regulation, according to a document obtained by CoinDesk.
The document, referred to as a “non-paper,” is an informal communication circulated among EU institutions ahead of closed-door negotiations. It outlines the agenda for an April meeting of the Financial Services Committee (FSC), which comprises senior representatives from the EU’s 27 member states and the European Commission.
The FSC, tasked with fostering policy coordination among EU nations, is soliciting input from its members on priorities and challenges in digital finance, sustainable finance, EU financial sector competitiveness, and economic security over the next five years. Notably, digital finance, encompassing crypto assets and service providers, emerges as a primary focus area.
Industry insiders view these documents as significant indicators of the EU’s financial services agenda. Discussions around digital finance encompass legislative measures like the Markets in Crypto Assets (MiCA) regulation, which establishes licensing frameworks for digital asset issuers and service providers operating across the EU. Additionally, plans for a digital euro underscore the EU’s ambition to lead globally in financial innovation.
The document emphasises the importance of enforcing financial services regulations effectively and potentially bolstering supervisory powers. With MiCA’s imminent implementation and the inclusion of crypto service providers under various financial regulations like anti-money laundering measures, cryptocurrencies are now firmly integrated into the EU’s financial industry.
While MiCA is set to come into force in December, there’s room for adjustments in subsequent iterations, potentially expanding its scope to include areas like decentralised finance (DeFi). Provisions aimed at enhancing supervisory capacities could have implications for the crypto industry.
The FSC’s scheduled meeting on April 10 will feature presentations of key feedback findings, paving the way for potential regulatory developments in the crypto space.