An incredible change in the crypto governance of the EU: financial regulation is a very good economy.

A surprise in the EU's cryptocurrency policy

Decentralized finance is one of the few best performing areas where the EU is doing very well. Last week, the board was given the task of applying the cryptocurrency market to Defi products. They are nice to the business.

Politics is by far the most important rule in the European crypto industry as it sets the rules for commentators, manufacturers, companies after tokens, crypto financial service providers, exchanges and agents.

What makes the EU market happy is that there are no new rules for NFTS tokens which are not fungible. It also does not apply to electronic devices, for example cryptographic devices that provide access to products or services provided by an advertiser. Free crypto assets and airdrops are also not responsible. Crypto-creation tools that benefit from blockchain operations are also not yet regulated.

For stability parts, that's another story. The European Union still embraces the idea of ​​expanding its own digital banking system. Stable coins in any form, whether attached to a fiat or a currency or a basket of assets, will be subject to strict monitoring, including a profit restriction, and all advertisers will need to be approved by national agencies.

Not all exchanges are subject to these rules. Probably because it cannot be used as we have discussed.

Another negative assumption for the industry is that standalone software and hardware wallets are not included in the new regulations. The first announcements regarding EU policies banning anonymous wallets are happening early. The EU appears to be more aware of the potential of Defi and Crypto.

Overview of EU government regulations on cryptocurrencies

The world's most important cryptocurrency regulations to date have arrived. You have read all the pages of "Proposal for Regulation of the EU Cryptocurrency Market". This is my conclusion.

a) Special crypto devices cannot be exchanged for other crypto assets: no rule

NFTs, including graphic and composite materials, do not meet the requirements described in this policy, although these assets are traded in the market and have an estimated value. .

B) Digital advantages: no rules

"Digital advantages" refer to cryptographic tools used only to provide access to products or services provided by token issues. The physical benefits do not comply with the rules described in these Terms as long as the goods or services are available or being performed.

C) Free crypto assets: no rule

Encrypted devices may violate the terms set out in this policy if the recipient does not provide money, fees, personal information, or revenue to the publisher / advertiser in exchange for encrypted assets. This can be good news for the Moons.

D) Cryptographic tools, “automatically created as a reward for DLT management or market analysis in terms of agreement”: no rules

These cryptographic devices do not meet the requirements described in this policy.

E) Earnings (fixed income): very strict rules

"Electronic money token" or "electronic money token" refers to an encrypted currency designed to secure a fixed value by referring to the value of the national currency. These tokens are strictly controlled. Only secured lenders and “electronic money institutions” can provide stable electronic money. They have to follow very strict rules. EDIT 1: Under these strict regulations, it seems even EU citizens cannot benefit from a stable coin. rope.

f) Digital consumer products: strict regulations

“Asset Reference Digital Currency” means crypto assets that are not electronic assets and are intended to be secured by reference to other assets or policies, or mixed affiliations, including one or more national currencies. This is what Facebook / Meta is trying to do with Libra. These tokens are strictly controlled. Only legitimate lenders and legal entities approved by EU member states can report digital assets with heritage value in the EU. They have to follow very strict rules.

G) Crypto assets that do not fall into the above categories: some rules

These crypto assets meet certain requirements. The Procedures define the detailed rules for the content of the white paper and set the rules for commercial communication. This is bad news for crooks who write bad, incomplete white papers and use inaccurate market information. The European Securities and Markets Authority (ESMA) is able to develop standards and guidelines for free brochures in the crypto industry.

Overall EU cryptocurrencies

The cryptocurrency will still be "Finance West", but there will now be a new police force in the city. The official is the European Union. We do not tolerate unregulated stablecoins, we do not tolerate more evil plans with unnecessary and bad labels and inappropriate trading, we do not tolerate trading that wastes EU public funds. However, they will try not to interfere with the development of cryptocurrencies and blockchains, as they love innovation and have made similar mistakes in other markets.