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@ Gracjan Pietras
2025-01-01 20:02:36
MiCA Regulation and the new AML Regulation have recently come into force, raising several concerns about how the EU is approaching non-custodial payment solutions. These include:
1. **Conflicts with privacy standards and human rights norms**
The rules permit excessive collection and sharing of information on private transactions without adequate safeguards, conflicting with EU privacy standards and international human rights principles, as emphasised in rulings by the Court of Justice of the European Union.
2. **Blocking innovation**
The regulations conflict with privacy-focused technologies, potentially stifling new ideas and platforms in the EU. This could weaken the EU’s position as a leader in digital finance.
3. **Hurting competition**
Compliance with these regulations increases operating costs for EU-based CASPs, placing them at a disadvantage compared to non-EU companies operating under less restrictive rules. This may push users toward unregulated services outside Europe, undermining the regulations' purpose.
4. **Excluding vulnerable groups**
The regulations could make it harder for people in poorer or politically unstable countries to access secure and private financial tools, leaving them without viable financial options.
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These issues are explored in detail in the [report](https://en.odfoundation.eu/content/uploads/2024/12/24.12.2024_report_on_non-custodial_wallets_final.pdf) prepared by nostr:npub15ka0zlfeys4vphnl6dk4x63e7sra0mp3wmrp4ml7q993z8km0n6spjxua8 and me for Open Dialogue Foundation upon the request of nostr:npub13ajk3hhvqys2ev4y68jwxywgs8fsdsuk4y5gkzs874jdyrccvf5qak2yd9 .
It is crucial to reopen the discussion on these issues and urge European lawmakers to reconsider their approach. The EU needs a regulatory framework that strikes a balance between security and privacy, fosters innovation, and rebuilds Europe’s weakened position in the global digital economy.
#MiCA #AML