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naddr1qv…paz5MiCA 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:
- 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.
- 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.
- 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.
- 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.
These issues are explored in detail in the report prepared by marcinliszka (npub15ka…xua8) and me for Open Dialogue Foundation upon the request of lyuda_kozlovska (npub13aj…2yd9) .
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
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