The upcoming European Parliament is expected to maintain the European Union’s favorable stance towards the cryptocurrency industry. Recently, 185 million voters from 27 member states participated in the elections to select the new European Parliament. The political landscape in Europe has shifted, with increased representation from the far-right, the consolidation of the European People’s Party (EPP), and a decline in the Greens/European Free Alliance (Greens/EFA).
Navigating the diverse interests of sovereign nations on sensitive issues such as EU grant distribution, migration policies, climate change, and defense strategies presents a challenge for the EU. Despite these complexities, Europe has made strides in addressing the needs of the crypto and blockchain sector.
Will the new EU Parliament lean towards cryptocurrency regulation? Insights from the European crypto community, as shared with Cointelegraph, shed light on the aftermath of the elections.
The EPP, the largest and most influential group in the European Parliament, with 189 seats, is anticipated to provide stability for the crypto industry. German MEP Markus Ferber highlighted the EPP’s pragmatic and technology-neutral approach to regulation, focusing on use cases rather than just the underlying technology. With a shift in the EU Parliament that could alleviate pressure on the crypto industry, center-left parties advocating for stringent regulations seem to have lost ground.
The Greens/EFA, with 53 seats, have experienced a decline and previously supported measures like blocking unhosted wallets and banning proof-of-work (PoW) crypto mining in Europe. The rise of far-right parties in Germany and France, prompting French President Emmanuel Macron to call for snap elections, adds a new dynamic to the political landscape.
While right-wing parties may support economic freedom, they might advocate for stricter financial regulations, posing challenges for the crypto industry. France and Germany, known for their reluctance towards cryptocurrencies, are also hesitant about adopting the upcoming digital euro.
Europe’s role as a global player in the crypto industry hinges on its unified approach to crypto regulation. The Markets in Crypto-Assets Regulation (MiCA) has positioned Europe as a trailblazer in global crypto regulation, providing a first-mover advantage. Thoughtful consideration is needed for further legislation on staking, DeFi, or NFTs to balance regulations and foster growth.
As the crypto industry evolves, regulations must adapt to ensure a level playing field. The EU’s high regulatory standards can provide security but may also burden smaller companies. Leveraging these standards to bridge the digital asset space with traditional finance is crucial for Europe’s future in the crypto industry.
Investing in education and awareness initiatives is essential to inform regulators and the public about blockchain and crypto technologies. Proper regulation can help the rapidly evolving crypto industry thrive in Europe, positioning the continent as a leader in the global tech race.