An informal document shared between EU officials indicates that the Financial Services Committee (FSC) will be discussing digital finance, including cryptocurrencies, at an upcoming meeting in April. These discussions have the potential to shape the future policies and regulations surrounding cryptocurrencies and the potential development of a digital euro.
The document, referred to as a “non-paper,” is an informal and unattributed document that is shared among EU institutions during closed negotiations. It outlines the topics that will be up for discussion in the upcoming FSC meeting, which consists of high-level representatives from the EU’s 27 member states and the European Commission.
The FSC’s main objective is to promote policy coordination between EU states. The committee is seeking feedback from its members on priorities and challenges for the next five years in various areas, including digital finance, sustainable finance, competitiveness of the EU financial sector, and economic security. Digital finance, which encompasses cryptocurrencies and service providers, is listed as the top topic for discussion.
Industry insiders believe that these discussions are highly relevant to the crypto industry. The document mentions several legislative packages that have already been passed, such as the Markets in Crypto Assets (MiCA) regulation, which establishes licensing regimes for digital asset issuers and service providers operating within the EU. It also mentions proposed packages, including plans for a digital euro, as examples of positioning the EU at the forefront of global financial innovation.
The document emphasizes the need for the EU to ensure the proper application of financial services rules and potentially strengthen its supervisory powers. With the adoption of MiCA and other financial regulations, the crypto industry is now considered part of the broader financial industry in the EU. Changes can still be made to the MiCA package, potentially bringing decentralized finance (DeFi) into its scope.
The upcoming FSC meeting, scheduled for April 10, will present the main findings from the feedback received. It is expected that proposals to strengthen supervisory powers may have implications for the crypto industry.
Overall, these high-level EU financial policy talks have the potential to significantly impact the oversight and regulation of cryptocurrencies. The discussions on digital finance, including the MiCA regulation and potential legislative plans for a digital euro, will shape the future direction of the crypto industry within the EU.