European Union could ban staking with stablecoins

The European Union is preparing to tighten the siege on the cryptocurrency market. The focus is now on stablecoins.

The proposal debated in the European Union involves banning platforms from paying interest on stablecoin deposits. So the information is from Patrick Hansen, DeFi’s head of strategy at Unstoppable Finance.

If approved, the proposal will virtually ban cryptocurrency staking in Europe. Furthermore, it will heavily affect decentralized exchanges as well as cryptocurrency exchanges.

According to Hansen, lawmakers will also tighten up on stablecoin issuers. The decision will be announced at a meeting of representatives of the European Parliament on 30 June.

The meeting itself will be the last in a series of sessions on the MiCA (Markets in Crypto-Assets) bill. The proposal is a regulation of cryptocurrencies

European Union closes siege on cryptocurrencies

The main issues have already gone through all the steps to become law, according to Hansen. He also noted that the EU Commission is also ready to introduce rules governing NFT tokens.

The aim is to protect consumers by requiring NFT platforms to obtain special licenses. At the same time, the expert emphasized that the ban on BTC is not being considered by lawmakers.

However, the EU plans to introduce special conditions for each individual digital asset. The DeFi industry is not yet being considered, according to him:

“But the European Commission plans to publish a separate report on the topic,” he said.

So, he says, the European Commission will launch a pilot project to oversee DeFi in 2023. In April, the European Union Parliament passed new anti-money laundering provisions.

The bill includes monitoring of cryptocurrency transactions The bill banned anonymous cryptocurrency transactions.

In addition, it forced large cryptocurrency companies to register their business in Europe and obtain a license.