The Problem of Unhosted Wallets Allows Transition to Crypto Regulation After Debates of Both European Parliament Committees!

• -In the European Parliament, the Committee on Economic and Monetary Affairs (ECON) and the Committee on Civil Liberties, Justice, and Home Affairs (LIBE) have reached a consensus and approved the draft of the crypto regulation, the Funds Transfer Regulation (TFR), which is the focus of their long discussions.

The effects of these decisions seem to harm the industry.

In line with the decisions created, it can change the pressure in this area with a decision on “non-hosted wallets” to indicate the wallets belonging to the institutions. According to article 5 in the draft of the European Parliament, a person who is not a customer of the capital markets is obliged to report every transfer he has made, in this case at least 1,000 Euros (1.1115 USD), depending on the size of the transfer.

Crypto Industry with Changes Made

As a result of the major changes made in this area, competent crypto industry representatives and Global Digital Finance (GDF)-style organizations think that they can harm the market due to the regulatory decisions made. They have called for the European Parliament to recognize ‘non-hosted wallets’ in this area and re-adjust the 1,000 EUR barrier, potentially aid to the sector, due to market losses. Detailed reporting on the reorganization and expansion of the stage was requested.

• -Considering the previous elections in the parliament, the European People’s Party (EPP), the largest group in the parliament, the second-largest group in the parliament, Socialists and Democrats, and ultra-left and green deputies voted in favor of the formations that will create controversy.
• -As the voting results obtained by Patrick Hansen, Head of Strategy and Business Development at Unstoppable Finance have shown, the lack of consensus among liberal, conservative, and far-right lawmakers will lead to the approval of the controversial regulations and measures by the committee.

According to the voting, 27 European Union member states or 705 European deputies are required for the bill to be brought to the general assembly vote. If this is not the case either, an interim agreement can be agreed on the draft legislation to end the triads. The informal tripartite discussion provided can be presented directly. To reach an agreement between institutions in the European Union, it must be officially approved in a registered form, but there will be no official record as a result of the agreement between the three institutions.