EU Prepares Final Meeting On Cryptocurrency: Big News Coming

On June 30, the European Parliament, European Commission and Council will hold their final meeting to discuss the MiCA draft law on the regulation of cryptocurrencies. At this meeting they hope to finalize two primary provisions.

Cryptocurrency advisor Patrick Hansen is announcing “huge implications for the crypto market in the EU”. After all, the commission will finally decide on two issues – how to regulate crypto-asset markets, and payment rules.

NFT question

The parties at the meeting will decide whether to include NFTs in the scope of MiCA regulation. The initiative was originally supported by the Commission, but was opposed by the Council and the Eurozone Parliament. The three bodies now seem to have reached a compromise.

According to the sources, companies that issue NFTs will not have to pay tax. But marketplaces and other third-party services that sell art tokens will have to transfer a percentage of their income.

Stable coins will be another hot topic at the meeting. The commission will decide what requirements to impose on issuers, and what taxes to impose on such transactions.

In March 2022, the European Parliament supported amendments to the regulation of information exchange between counterparties, which involves collecting data on users of non-custodial cryptocurrency wallets.

Digital asset transactions are not subject to the de minimis principle, so all transfers, except for P2P transactions, will fall under the Transfer of Funds Regulation (TFR). 

The outcome of the meeting may noticeably affect investor sentiment (and hence, the cryptocurrency rate). Therefore, we will keep a close eye on events.

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