Europe Financial News

Less than a week after a potential ban on Proof-of-Work (PoW) digital assets was dropped from the EU’s prospective MiCA framework, a new threat to the crypto industry could be emerging in the European Union. This time, it is non-custodial, or unhosted, wallets that are in regulators’ crosshairs.

The much-dreaded prospect of a ban on cryptocurrencies that use proof-of-work (PoW) consensus is making its way into a key European digital asset directive appears to have blown over.

Last week, Bitcoin (BTC) dodged a regulatory bullet in the European Union when proposed cryptocurrency legislation was altered to not include a ban on proof-of-work- (PoW)-based crypto assets. Policymakers had raised a number of concerns about the relative anonymity of crypto transactions and their environmental impact. Some experts including Tim Frost, founder and CEO of Yield App, believe that the “climate change” angle reflects a hidden attempt to ban Bitcoin. But, why? 

The President of the European Central Bank, Christine Lagarde has reiterated warnings that Russian individuals and businesses are using cryptocurrencies to skirt sanctions.

The Bank for International Settlements (BIS)'s central bank digital currency (CBDC) project, known as Project Dunbar, has created more questions than answers, the international body said today. However, establishing a global network of connected CBDC platforms still remains a goal for the bank.

Bitcoin (BTC) and crypto adoption on a state level may soon extend beyond El Salvador, with politicians elsewhere in the Americas – and even one European royal – mulling moves that could see the cryptocurrency brought into their financial systems in some form or other.

The proposed European Union Regulation on Markets in Crypto Assets, or MiCA, (hereinafter the “regulation”) was put to a vote in the European Union Parliament’s Committee on Economic and Monetary Affairs on March 14, 2022, and in the end, the proposed amendment to ban or restrict proof-of-work-based crypto assets, which would have effectively resulted in a ban on Bitcoin (BTC), was rejected.

On Monday, March 14, the European Blockchain Observatory announced a call for tenders to contract a consortium, whose mission will be to facilitate and operate a pan-European regulatory sandbox for distributed ledger technologies, or DLT, and blockchain in particular. 

As Russia’s self-styled “special operation” against Ukraine continues, crippling economic sanctions remain the Western powers’ primary weapon to counter Russia’s military actions without triggering an even more dramatic escalation. As NATO and allies’ financial offensive unfolds, ensuring that the collective West presents a united front remains political leaders’ chief concern. The global crypto industry keeps getting suspicious looks as some agents of state power are seemingly entrenched in their beliefs that digital assets could be the weak spot undermining the efficiency of the sanctions push. Despite ample evidence to the contrary — including the FBI director’s Congress testimony — there are signs of increased regulatory pressure on the crypto industry participants, as well as policy initiatives that clearly capitalize on the situation to tighten state control of digital assets’ circulation.

Earlier today, members of the European Parliament’s Committee on Economic and Monetary Affairs in the European Parliament voted against a version of the Markets in Crypto Assets, or MiCA, bill that could have effectively banned the proof-of-work-based cryptocurrencies within the EU. This comes as a huge relief for the crypto industry, whose representatives had previously warned about the threat of a hardline regulatory scenario. 

The legal standing of Bitcoin mining in the European Union hinges on the results of a March 14 vote in the European Parliamentary Committee on Markets in Crypto Assets (MiCA).

It has been two weeks since Russia kicked off the first large-scale military action in Europe in the 21st century — a so-called “special operation” in Ukraine. The military conflict immediately triggered devastating sanctions against the Russian economy from the United States, the European Union and their allies and has put the crypto industry in a position that is both highly vulnerable and demanding.

According to recent media reports, six European countries, led by Germany, are working on launching an Anti-Money Laundering (AML) body that will include the cryptocurrency market in its purview. Details remain scarce, but it is known that the initiative involves Germany, Spain, Austria, Italy, Luxembourg and the Netherlands. The group is working on “the remit and design” of a new international AML watchdog force that will have a particular emphasis on crypto, and the European Commission — the key executive institution of the European Union — will be the primary platform for the discussion. How will the move affect the European crypto space?

The European Commission has clarified that crypto assets will fall under additional sanctions targeted against Russia and Belarus in response to the military conflict in Ukraine.

The European Union has today extended the scope of sanctions on Russia and Belarus, bringing clarifications on cryptoassets into the mix – but as the full legal text is not available yet, these points remain somewhat unclear.

While the US President Joe Biden is reportedly set to sign a new crypto- and central bank digital currency (CBDC)-related executive order, the European Union is set for a vote on the much-discussed Markets in Crypto Assets (MiCA) framework.

The parliament of the European Union has scheduled a vote on a framework aimed at regulating cryptocurrencies after addressing concerns over proof-of-work mining.

The global crypto derivatives and spot trading exchange FTX is expanding to Europe after receiving approval from the Cyprus Securities and Exchange Commission (CySEC).

The city of Lugano, the economic capital of Italian-speaking southern Switzerland, is adopting cryptocurrencies for tax payments as part of a new collaboration with the provider of Tether (USDT) stablecoin.

The next round of sanctions against Russia and wealthy individuals based in the country could target crypto and crypto exchanges, with Washington already taking aim at those hoping to secure their funds by making bitcoin (BTC) and altcoin buys.

Economy and finance ministers representing nations in the European Union have said they will address Russia’s potential use of cryptocurrencies to evade sanctions imposed on it following its operations in Ukraine.