For the last two years, the EU government has wanted to launch the Markets in Crypto Assets (MiCA) framework for the crypto industry. This framework will help to combat crypto fundraising schemes in the EU nations. As a result, the organizations decided to develop a framework that would assist EU nations in maintaining their top position in cryptocurrency payment.
The European Union is preparing a draft to regulate privacy coins in the states. Privacy coins are digital assets that are designed to protect the privacy of users’ ID and transactions. The well known privacy coins Monero, Zcash and Dash are going to be banned in EU nations. Mainly to avoid traceability of the users The EU financial institutions made the decision.
Recently, the investors related to digital currency firms were excited about the announcement of the removal of limitations on stablecoins other than the euro. But the new announcement made investors disappointed that the cap has restrictions on non-euro stablecoin transactions per day.
“This effectively means e-money tokens will have problems setting up transactions with EU-based crypto service providers, negatively affecting the market in the EU.”
The lawmakers and officials have agreed on new regulation policies on digital assets, which could have an impact on the users of cryptocurrency firms. Transaction caps for non-euro stablecoins will be reintroduced into the European Union (EU) to ensure digital currency security. The cap will help to restrict the transactions on stablecoins like $200 million (USD) of non-euro stablecoin transactions per day.
Recently, the International Monetary Fund (IMF) has also initiated a step for safer transactions in digital assets. The IMF published a report in the September edition of its flagship titled Finance and Development magazine, “Crypto Regulation: The Right Provisions Could Provide a Better and Safer Space for Technology.”
The Financial Action Task Force (FATF) has taken steps to provide common regulations for all digital asset service providers to overcome money laundering issues. The International Organization of Securities Commissions (IOSC) also issued certain provisions on crypto exchange platforms. The announcement of Libra’s “global stablecoin” grabbed the world’s attention and added greater impact to these efforts.
Recently, the North Korean hacker community’s Lazarus group used Ethereum’s Tornado Cash mixing application to deposit and withdraw assets from various addresses. Due to the consequences, the Office of Foregin Asset Control (OFAC) banned the application to protect the users from attacks.
Recently, the International Monetary Fund (IMF) has also initiated a step for safer transactions in digital assets. The IMF published a report in the September edition of its flagship titled Finance and Development magazine, “Crypto Regulation: The Right Provisions Could Provide a Better and Safer Space for Technology.”
The FTX breakdown created a high level of doubt and fear among crypto investors and users. Last week’s crypto market was filled with uncertainty for crypto asset prices. Investors are afraid to make a move on cryptocurrency after facing huge losses in the recent FTX collapse. So the White House is making decisions to implement strict cryptocurrency regulations in the United States.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/11/16/the-eu-wants-to-ban-privacy-coins-in-the-states/