Chris MacManus, a Member of the European Parliament (MEP) representing Midland Northwest, Ireland, has called for strict regulations on crypto in Europe.
According to a report on Wednesday, Sinn Féin MEP wants wholesale changes to the digital currency changes proposed by the European Union.
MacManus has tabled 45 amendments to the EU aimed at tightening encryption laws in the region. In detailing his proposed encryption regulations, the Irish MEP stated:
“According to my proposals, all new and existing cryptographic assets will require the authorization of a ‘competent authority’ such as the Central Bank. Currently, foreign exchange founders simply have to deposit a technical document describing the purpose and technology of digital currency, without any scrutiny.These white papers, by virtue of my amendments, would also require much more detail and transparency. ”
MacManus also goes after mining and with the MEP stating that state authorities should examine the potential environmental impact of cryptographic activities before granting permission to any project.
The Irish MEP recommendation also includes regulations for stable currency issuers and virtual asset service providers (VASPs). In stable currencies, MacManus asked issuers to have enough capital to support the value of their outstanding tokens.
Such a provision would mean that stable currency forks will be able to change the value of their “currencies” based on the support of the fiat currency. For VASPs such as third-party exchanges, portfolios and custodians, MacManus wants EU encryption laws to impose customer protection policies.
According to MacManus, its proposals would help improve the transparency and security of the digital currency market while combating the use of virtual currencies for criminal activities.
In May, Derville Rowland, chief financial officer of the Central Bank of Ireland, warned that Bitcoin was a major concern for regulators.
In September 2020, the European Commission released a regulatory proposal entitled Cryptographic Asset Markets (mica) as part of efforts to introduce digital currency regulations across the region.
Mica has been the subject of significant debate among industry stakeholders with the International Association of Trusted Blockchain Applications (INATBA) warning that the proposed cryptographic rules hinder the development of new emerging crypto and blockchain companies.