EU plans to finalize law on cryptocurrency regulation this week

Patrick Hansen, a financial expert at Unstoppable Finance, wrote on his Twitter page that the European Parliament, the European Commission, and the Council of the EU will finalize the discussion of the draft law on the supervision of digital currencies (MiCA) by the end of June.

«Two of the most important EU bills on cryptocurrencies today: MiCA and TFR, should be finalized by the end of June. They will have huge implications for the crypto market in the EU and beyond,» Patrick Hansen wrote.

1/ The two most important EU crypto regulations to date, MiCA («PoW-ban») & TFR («unhosted wallets»), are about to be finalized by the end of June.

They have huge implications for the crypto market in the EU and beyond.

Here is a quick update thread on both regulations 👇

— Patrick Hansen (@paddi_hansen) June 25, 2022

The expert also assured that the key issues have already passed all stages of approval and only minor nuances remain regarding the approval of plans for the development of the crypto industry. According to Hansen, the European Commission is ready to add rules to the MiCA that will regulate the circulation of non-fungible tokens (although officials did not see the need for this before). The European Commission has now agreed that rules on non-fungible tokens are needed to protect investors and collectors. Also, as previously reported by sources familiar with this issue, MiCA will take into account the environmental impact of cryptocurrencies based on the PoW (Proof-of-work) algorithm.

In one of his tweets, Hansen also said that the law on cryptocurrency regulation will not include control over DeFi (decentralized financial systems). In 2023, the European Commission plans to publish a separate report on this issue and launch a pilot project for «DeFi supervision».

Interestingly, earlier the Lithuanian government started regulating the circulation of cryptocurrencies without the approval of the European Union. The government emphasized that they support all EU decisions regarding the crypto industry, but they believe that the adoption of the law will take a long time. Therefore, Lithuania decided to take practical steps now.