Chris MacManus, a Member of the European Parliament (MEP) representing Midland Northwest, Ireland, has called for strict regulations on cryptocurrencies in Europe.
According to a report on Wednesday The Sinn FÃ © in the MEP wants to significantly change the already proposed cryptocurrency rules of the European Union.
MacManus has submitted 45 changes to the EU to tighten cryptocurrency laws in the region.. In detailing his proposed cryptocurrency regulations, the Irish MEP stated:
“According to my suggestions, all new and existing crypto assets require the approval of a“ competent authority ”such as the central bank. Currently, currency founders simply have to submit a whitepaper that describes the purpose and technology of cryptocurrencies, without any testing. These white papers would also require much more detail and transparency due to my amendments. “
MacManus also goes into mining, and the MP claims that state agencies need to assess the potential environmental impact of crypto activities before granting a permit to a project.
The Irish MEP Recommendation also contains regulations for stablecoin issuers and Virtual Asset Service Providers (VASP). With stable coins, MacManus urged issuers to have enough capital to cover the value of their outstanding tokens.
Such an agreement would mean that stablecoin holders could redeem the value of their “coins” based on the support of fiat currency. For VASPs such as exchanges, wallets and third-party custodians, MacManus would like EU cryptocurrency laws to impose customer protection guidelines.
According to MacManus, Their proposals would help improve the transparency and security of the cryptocurrency market while combating the use of virtual currencies for criminal activity.
In May, Derville Rowland, director of financial conduct for the central bank of Ireland, warned that bitcoin was of great concern to regulators.
In September 2020, The European Commission has published a regulatory proposal called Mercados de Criptoactivos (MiCA) as part of an effort to introduce cryptocurrency regulations across the region.
MiCA has been the subject of significant debate among industry leaders, with the International Trusted Blockchain Applications Association (INATBA) warning that the proposed crypto rules will hamper the development of new cryptocurrency and blockchain startups.