The European Council is currently preparing for the next round of the MiCA trilogue. On Wednesday 18 May, the EU Heads of State and Government will meet with representatives of the Commission and Parliament. In addition, the Council announced discussion points in advance, which are to be debated on Wednesday. Cryptheory has an excerpt of the position paper.
Specifically, the EU Council takes a position on twelve points. For example, the panel is in favor of excluding NFTs from the MiCA regulation. Rather, they want to regulate the non-fungible tokens through their own legal framework.
The council also rejects the idea of pre-approving a white paper for crypto projects. Instead, national supervisory authorities should be given the opportunity to request changes and additional provisions to the document in advance and afterwards. If the proposal were implemented, this would be comparable to a prospectus requirement for securities.
EU Council: “National Authorities Should Oversee Crypto Exchanges”
In addition, the European stock exchange supervisory authority ESMA should not be involved in the monitoring of large crypto providers like binance or Coinbase be commissioned. This comes as a surprise, insiders previously reported that the French-led Council Presidency wanted to strengthen the national blockchain economy with this step.
Rather, national authorities should be able to authorize and supervise the so-called “Crypto Asset Service Provider” (CASP). To this end, the EU Council proposes a processing period of no more than three months. The body rejects Parliament’s proposal for automatic approval after the processing period has expired.
In addition to the EU Council, the Commission is also currently working intensively on the positions of the parties involved. Most recently, the executive body of the EU criticized individual passages of the parliamentary draft.
In general, the regulation is intended to create a uniform legal framework for crypto assets in Europe. In the crypto space, the regulatory initiative attracted attention primarily due to the threat of a ban on proof-of-work-based cryptocurrencies such as BTC.