Regulation
How the Crypto Industry is Exploiting EU Political Shift as Up to 400 Million Voters Vote – DL News
- Crypto associations make demands aimed at the next EU administration.
- The sector’s biggest challenge is competing with stronger economies.
- European Commission officials respond to industry requests.
As European voters head to the polls across the continent, the cryptocurrency industry has sent a clear message to European Union officials: grow the sector. Keep the momentum going.
Some 373 million voters will vote at the weekend in countries such as Germany, France and Spain for the new leaders who will represent them in the European Parliament for the next five years.
The cryptocurrency industry has seized on the changing political winds, outlining a roadmap in a manifesto that leaders say will sharpen the priorities of incoming officials.
THE manifestsigned by four trade associations, argues that the EU is rapidly losing ground to America and Asia in the race to host new digital economies.
The roadmap will be a “source of inspiration for the next policy cycle,” said Joachim Schwerin, a European Commission economist who helps develop policies on Europe’s digital markets. DL News.
The next five years
Schwerin said a stronger partnership between the public and private sectors is crucial.
“The next five years will be years of co-learning, advanced infrastructure and use case development, and more significant steps towards industry-driven standards-based interoperability.”
Unlike their US counterparts, EU regulators have provided the cryptocurrency industry with a set of regulations within which it can operate.
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But the European industry faces a new battle as global financial hubs compete for a growing army of cryptocurrency users.
Their manifesto suggests that blockchain technology could underpin systems for global trade transparency and cybersecurity, as well as advancing a potential $16 trillion tokenized economy.
According to a French industry, the web3 industry is expected to grow from around $1 billion to almost $60 billion by 2028 relationship make further policy recommendations published in May.
European competitiveness put to the test
The industry calls come as European bigwigs warn of a decline in the competitiveness of the bloc’s market, already seen as a laggard in the global race.
“In an era where technology increasingly dominates, Europe is grappling with the challenge of keeping pace with rapid global advances,” wrote Enrico Letta, a former Italian prime minister in an April message relationship.
He said the continent has failed to cultivate a strong ecosystem for the tech industry and should prioritize mobilizing private capital.
Letta is not the only one to comment on the lethargy of European markets.
According to relationship of the European Securities and Markets Authority.
“More effort is needed to create a true single market for EU capital,” the regulators wrote.
Gigantic task
“In the last five-year political cycle, the EU has undertaken a colossal task to put in place legislation for the blockchain and digital asset sector, exploiting a state of regulatory battles across the Atlantic to get into pole position,” he said Erwin Voloder, head of policy at the European Blockchain Association.
This association has published a further open letter in April it focused on blockchain infrastructure.
“We hope to see more focus on digital identity and blockchain for the real economy,” said Erwin Voloder, head of policy and the European Blockchain Association.
This trend is already emerging, as the EU passed digital identity legislation this year. And, in a win for blockchain advocates, the text includes a line about the use of zero-knowledge cryptography.
Voloder is among the trade association leaders who have sent hundreds of lawmakers their visions for the next term.
In recent months, crypto organizations have published a series of manifestos and open letters aimed at the next EU administration.
While the United States is making strides towards establishing regulation for cryptocurrencies, major players have been embroiled in lawsuits over the gray area of legal definitions of cryptocurrencies.
First of all MiCA
Meanwhile, the European industry is getting closer to implementing regulation on cryptocurrency markets.
The regulation was the first globally, designed specifically for crypto providers and issuers. The rules will gradually come into force from the end of June.
MiCA joined other laws combating money laundering and tightening financial services rules involving cryptocurrency companies completed since 2019.
But for now, when it comes to blockchain and cryptocurrencies, the European Commission has its work cut out for it.
The European Commission will publish reports on developments in the field of DeFi, NFTs and crypto lending later this year. These are the instructions given in the MiCA regulation.
“The manifestos and wish lists cover these three issues, but they also go beyond,” a European Commission official, who has seen some of the industry reports, told DL News.
“Experience with MiCA implementation and market developments will be determining factors in what – if anything – we might propose.”