The EU needs its own blockchain for digital payments and smart contracts that would rival existing networks such as Ethereum, says Belgian digital minister Mathieu Michel.
The bloc plans to introduce landmark regulatory framework for cryptocurrencies and digital assets in April.
If the EU’s Markets in Crypto Assets (MiCA) legislation is accepted in next month’s vote, it will see the world’s first multi-national regulatory framework for crypto and digital assets.
The bloc now needs to develop its own blockchain that would be able to record property ownership, driving licenses and professional qualifications, according to Michel.
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The scheme would take blockchain use cases into Gov-tech, public services and supply-chain management for the first time.
Michel has dubbed the conceptualised EU-wide blockchain, “Europeum”.
Michel told Coindesk that if MiCA is ratified, then the EU needs “a blockchain network constructed around the foundational values that underpin European society”.
He said: “Imagine you have Europeum, a blockchain that contains a whole series of conditions for protecting private life and so on, which are very transparent”.
He added that the blockchain could focus on the digitising of administrative documents or on-chain storage of educational qualification that could be recognised by all institutions across the bloc.
What is MiCA?
The EU is set to vote on the proposed Markets in Crypto Assets (MiCA) law in April, which if ratified will create a common licensing regime for crypto wallets and exchanges operating in all 27 members of the bloc.
European legislators have already agreed upon the law in principle, but the almost 400-page text needs to be formally signed off by the lawmakers and national governments that make up the EU’s Governing Council.
The planned legislation was introduced by the European Commission in September 2020 as part of the broader Digital Finance Package, and is meant to foster innovation, enhance consumer protection, and contribute to financial stability as the digital asset market expands.
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The key components of the planned MiCA regulation include:
Classification of crypto assets
MiCA establishes a clear definition and classification of various types of crypto assets, such as utility tokens, asset-referenced tokens, and e-money tokens.
This classification helps in determining the appropriate regulatory treatment for each type of token.
Issuance and trading
The proposal sets out rules for the issuance and trading of crypto assets. Issuers are required to publish a detailed whitepaper containing information about the project, the token, and the risks involved.
They must also register with the any appropriate national authorities.
Licensing requirements
Crypto-asset service providers (CASPs), such as wallet providers, exchanges, and custodians, are required to obtain authorisation from their respective national authorities to operate within the EU.
This ensures that these entities adhere to EU-based anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, as well as other operational and organisational standards.
Market abuse and transparency
MiCA introduces rules to prevent market abuse and manipulation, such as insider trading and front-running.
It also mandates transparency and disclosure requirements for issuers and CASPs to foster trust and confidence in this burgeoning market.
Consumer and investor protection
The proposal introduces safeguards, such as a requirement for issuers to segregate customer assets, mandatory insurance or similar guarantees for CASPs, and clear communication of risks associated with crypto assets.
Supervision and enforcement
MiCA establishes a harmonised approach to the supervision and enforcement of crypto-asset markets across the EU. This includes cooperation among national authorities and the creation of a single rulebook to ensure consistency in the application of regulations.
Mathieu Michel did not immediately respond to a Yahoo Finance UK request for comment.
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