Web3 advocates are cautiously welcoming Europe's new law, but must first resolve its paradoxes – like when is a non-fungible token fungible?
The world’s third-biggest economy wants the Markets in Crypto Assets Regulation to protect investors and set up strict standards for stablecoin issuers.
Holdings of unbacked crypto like bitcoin and algorithmic stablecoins would be limited to 1% of a lender’s capital under the standard setter's new plans put out for consultation Thursday.
After the potentially privacy-busting "travel rule" for crypto transfers, global standard setters at the Financial Action Task Force have their eyes on DeFi, NFTs and unhosted wallets.
A Wednesday meeting secured a final deal on anti-money laundering legislation for crypto transfers and largely overturned a proposal from the EU Parliament to impose laundering checks on all payments to private wallets.
Officials could this week finalize controversial privacy and licensing rules for the sector – once they decide how to treat NFTs and unhosted wallets.
Not all stablecoins are alike, analysts note, but regulations may be needed to precipitate audits and investor fairness.