There is currently a struggle in Europe to pass the Mica regulation to regulate the crypto world.

The European Parliament wants comprehensive verification of crypto custody accounts (wallets) stored on users' computers, as well as automatic control reports for transfers with a value of more than 1000 euros, as well as a register of crypto service providers who do not act in accordance with the regulation.

Martin Hock

Editor in Business.

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In an answer to a question from the Bundestag member Frank Schäffler (FDP), the Ministry of Finance was critical.

The position found in the Council contains the basis for balanced money laundering regulation, it says.

The simple identification of decentralized wallets is sufficient.

When preparing the trilogue between the Commission, the Council and Parliament, the Federal Government will work to ensure that crypto service providers are allowed to assess the risk of a transfer using blockchain analysis tools and take risk-adequate measures.

Too much regulation could lead to anonymity.

The proposals are also difficult to reconcile with the current approach to combating money laundering and terrorist financing, as is automatic transfer notifications.

The introduction of a population register and a possible ban on admission face a number of open questions, such as determining when a service provider is not acting in accordance with the ordinance.

"Parliament is throwing the baby out with the bathwater," says Schäffler.

"There is no comparable ban outside of the crypto sector for the proposed ban on the licensing of crypto service providers from 'non-compliant' jurisdictions." He is glad that the Federal Ministry of Finance and the Commission opposed "the hasty advances of the European Parliament", which could bury Europe as a crypto location.