Chris McManus, a member of the European Parliament (MEP) representing the Midland Northwest, Ireland, has called for stricter crypto regulations in Europe.
according to a report good On Wednesday, MEPs from Sinn Féin seek wholesale changes to the EU’s proposed cryptocurrency changes.
McManus has submitted 45 amendments to the EU aimed at making crypto laws stricter in the region. Detailing his proposed crypto regulations, the Irish MEP said:
“Under my proposals, all new and existing crypto-assets would require authorization by a ‘competent authority’ such as the Central Bank. Currently, currency founders are only required to submit a white paper that outlines the purpose and technology of crypto. These white papers, under my amendments, will also require a lot of detail and transparency.”
McManus is also going after mining and with MEPs saying that state officials need to investigate the potential environmental impact of crypto activities before granting authorization to any projects.
The Irish MEP’s recommendations also include regulations for stablecoin issuers and virtual asset service providers (VASPs). On stablecoins, McManus called on issuers to have enough capital to keep the value of their tokens in circulation.
Such a provision would mean that stablecoin holders would be able to redeem the value of their “coins” based on fiat currency backing. For exchanges, wallets and third-party custodians such as VASPs, McManus wants EU crypto laws to mandate customer protection policies.
According to McManus, their proposals will help improve transparency and security of the crypto market while combating the use of virtual currencies for criminal activities.
Back in May, Darville Rowland, Director of Financial Conduct at the Central Bank of Ireland, warned that bitcoin was of great concern to regulators.
In September 2020, the European Commission Published a regulatory proposal titled Markets in Crypto Assets (MiCA) As part of efforts to introduce region-wide cryptocurrency regulations.
Micah is done subject of significant debate Industry stakeholders with the International Association for Trusted Blockchain Applications (INATBA) warned that the proposed crypto regulations would impediment to development of emerging crypto and blockchain startups.