New German government references cryptocurrency in alliance agreement

The new German government cited cryptocurrency in its alliance agreement, advocating the establishment of a level playing field between traditional finance and “innovative business models.”

The three German parties agreed to an alliance agreement this week. From December this year, the left-wing Social Democratic Party (SDP), the Green Party and the right-wing Liberal Democratic Party (FDP) will take over as the ruling party.

Based on a rough translation on page 177 protocol The alliance was released on November 24, calling for the establishment of new “dynamics related to the opportunities and risks brought about by new financial innovations,” such as crypto assets and blockchain businesses:

“We are adapting European financial market regulation law to digital and complex group structures to ensure comprehensive and risk-adequate regulation of new business models.”

“We need to conduct joint European supervision of the crypto industry. We require crypto asset service providers to consistently identify beneficial owners,” the agreement added.

The document states that EU regulators should “not only take care of the traditional financial sector, but also prevent the abuse of cryptocurrencies for money laundering and terrorist financing.”

According to reports, after the German federal election on September 26, the formation of the alliance was negotiated for two months. This marked the end of Angela Merkel’s 16-year term as prime minister. The prime minister is about to retire. Olaf Scholz of the Social Democratic Party succeeded.

Encryption makes progress across the EU

Elsewhere on the European continent, the European Council that guides the EU’s political agenda Two proposals passed Named “Encrypted Asset Market Supervision (MiCA)” frame And the “Digital Operational Resilience Act” (DORA).

Especially MICA-originally created by European Commission September 2020— Target Create a regulatory framework for the crypto asset market to support innovation and capitalize on the potential of crypto assets.Although it still needs to be approved by the European Parliament, if promulgated, it will impose stricter requirements on crypto asset issuers, but Irreplaceable tokens (NFT) and utility tokens will not be within the scope of supervision.

related: The European Central Bank is committed to DLT-based asset settlement

In synthesis postal On November 26, the user “BelgianPolitics” on the r/CryptoCurrency subReddit marked the progressive regulation proposal as “the most important proposal for the entire crypto industry so far.”

At the time of writing, Redditor’s analysis had nearly 900 comments and provided a detailed outline of MICA’s proposed law. The author emphasizes the importance of the proposal:

“Every entity operating in the EU must comply with these rules. However, due to ‘Brussels effect,’These rules are likely to eventually become international standards. Although everyone is focused on the United States and China, the European Union takes the lead casually,” said Belgian Politics.