The new European Parliament is ready to continue its policies of support for the EU
The new European Parliament is expected to continue the EU’s relatively friendly policies towards the cryptocurrency industry.
Last week, 185 million European voters from 27 member states took part in the elections to elect the new European Parliament.
The European political landscape has been transformed by the rise of far-right representation, the consolidation of the European People’s Party (EPP) and the decline of the Greens/European Free Alliance (Greens/EFA).
The European Union faces the difficult task of dealing with the global complexities plaguing the continent politically, as sovereign states take different approaches to dealing with sensitive issues, such as the distribution of EU subsidies, policies immigration and asylum, climate change and the energy transition, or the formation of a common agreement. defense strategy.
Despite this complex political space, Europe has managed to meet certain needs of the cryptocurrency and blockchain sector.
Will the new European Parliament support the regulation of cryptocurrencies? The European cryptocurrency community spoke to Cointelegraph to examine the electoral implications.
The new parliament is good for the cryptocurrency industry
The largest and most influential party in the European Parliament, the European People’s Party, has 189 seats in the European Parliament.
German MEP Markus Ferber of the European People’s Party told Cointelegraph that he believes the increase of 13 seats compared to the last European elections brings stability to the cryptocurrency sector, as “the EPP often has a more pragmatic approach and technologically neutral in terms of regulation.
Ferber explained that EPP’s technology neutrality is based on its risk-based approach that looks at use cases and not just the underlying technology.
He said there was a major change in the European Parliament that could relieve pressure on the cryptocurrency sector. Ferber noted that center-left parties that were “most eager to restrict cryptocurrencies in every way possible” lost many seats.
The Green Party/UEFA gained 53 seats after losing 18.
In 2022, this political faction supported the vote to ban unhosted wallets and even attempted to ban proof-of-work (PoW) cryptocurrency mining in Europe.
Peter Muric, Head of Partnerships for Bitcoin (BTC) Self-Wagging. DLC.Link Solution told Cointelegraph that the new parliamentary balance was a relief for cryptocurrency miners:
“With the Green Party not having much power, EU cryptocurrency miners can sleep better at night.”
The rise of far-right parties is also significant, particularly in Germany and France, the two economic powers.
This increase in support for far-right parties was such that it prompted French President Emmanuel Macron to call early elections.
Michael Gebert, president of the European Blockchain Association, told Cointelegraph that these parties do not necessarily support the cryptocurrency industry: “While right-wing parties often support economic freedom, their conservative stance on regulation financial could lead to stricter measures. »
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Gerber said right-wing parties have demanded stricter “know your customer” and “anti-money laundering” requirements, stricter transaction reporting and increased compliance costs through licenses and regular audits.
France, led by Marine Le Pen’s National Rally (NR), and Germany, led by Alice Weidel’s Alternative for Germany (AfD), are not known for their openness towards cryptocurrencies. However, both are hesitant to adopt the next digital euro.
The European Union’s top position in regulating cryptocurrencies is at stake
Although there is a common perception that Europe is losing out in technological competition with the United States and China, the adoption of uniform cryptocurrency regulation across EU countries has made it Europe a promising global player in the cryptocurrency sector.
Henrique Correa da Silva, director of the New Economy Institute, a technology think tank, told Cointelegraph that he believes “cryptocurrencies represent one of the best opportunities for Europe to avoid missing another train in the global technological race.
He added that Europe must continue on this path, because “the United States and China have lost the ground – for now.”
Renis Znotic, executive director of the Latvian Blockchain Association, told Cointelegraph that “US regulation and ecosystem development are sorely lacking” and that the European Parliament’s recent approach was promising for the blockchain industry. cryptocurrency.
The creation of the Markets for Cryptoassets Regulatory (MiCA) has made Europe a leader in global cryptocurrency regulation.
Mark Foster, head of European policy at the Cryptocurrency Innovation Council, told Cointelegraph that MiCA has given Europe a first-mover advantage. If managed appropriately, he believes unified regulation of cryptocurrencies could “boost business” in the world’s largest single market.
He believes that the big difference between the United States and China is that “cryptocurrencies are not a partisan political issue in Europe (…) cryptocurrencies are not a divisive issue between the right and the left” and therefore expects a “continuity of policy” after the last vote. . results.
João Augusto, head of compliance at Spanish exchange Bit2Me, told Cointelegraph that the next critical step is MiCA II, which will include regulations for decentralized finance (DeFi), non-fungible tokens (NFTs) and decentralized autonomous organizations non-fungible (DAO). . t currently covered.
Foster believes that the EU should carry out a “careful cost/benefit analysis before embarking on new legislation – for example on staking, DeFi or NFTs” – because the stakes are enormous.
The European cryptocurrency industry needs balanced regulation
Regulation is a living organism that must be constantly updated or modified as the cryptocurrency industry evolves, and the second version of the MiCA regulations is already underway.
Sebastian Hein, head of risk and compliance at institutional partner Northstake, told Cointelegraph that national regulatory authorities (NRAs) need to unlock the missing forecasts for “the detailed implementation of MiCA so that companies can prepare early and be more targeted.”
He believes that Europe’s new priority should be to leverage its high regulatory standards to “connect the digital assets space more quickly to TradFi.”
Hein stressed the need for balanced regulation, as stricter European regulatory standards could be a solution. A double-edged sword for the crypto industry.
On the one hand, it offers investors and partners “a high level of security for companies striving to achieve this level of compliance and regulation.” But on the other hand, small businesses “may find these regulations burdensome.”
Edwin Mata, CEO and co-founder of token group Preqin, told Cointelegraph that he believes the European Parliament should create incentives for the issuance of tokenized assets within European jurisdictions.
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Mata believes that the potential market for real-world asset (RWA) tokens is huge, with “trillions of euros” at stake. He believes that Europe could benefit from RWA tokenization, because “the capital, the “The expertise and infrastructure needed for this emerging market can be created within the EU.”
A common thread among those in the cryptocurrency industry is the need to invest in education and awareness initiatives to inform regulators and the public about the potential of blockchain technologies and cryptocurrencies.
Mata believes that European regulations could become too restrictive if European lawmakers “lack a thorough understanding of the technology’s potential.”
Europe has been slow to take the lead in the global technological race. Proper regulation of cryptocurrencies could help a rapidly developing industry thrive on the Old Continent.
