Upcoming High-Level EU Financial Policy Talks Could Steer Crypto Oversight: Source

Top European officials are getting ready to enter talks in April that industry insiders say could steer the future direction of crypto oversight, a document seen by CoinDesk reveals.

The “non-paper,” an informal, unattributed document shared among EU institutions in closed negotiations, indicates what will be up for discussion in an upcoming April meeting of the Financial Services Committee (FSC), which is made up of high-level representatives from the bloc’s 27 states as well as from its executive arm, the European Commission.

The FSC, designed to promote policy coordination between EU states, is seeking feedback from its members on priorities and challenges for the next five years in digital finance, sustainable finance, competitiveness of the EU financial sector and economic security, according to the paper. Digital finance, which includes crypto assets and service providers thanks to robust new laws, topped the list of topics to be discussed.

“Such documents highlighting the priorities of the EU in the financial services field are very relevant to the crypto industry,” an industry member familiar with the matter told CoinDesk.

Under discussions on digital finance, the document mentions a number of legislative packages that have already passed, including the pivotal Markets in Crypto Assets (MiCA) regulation that sets up licensing regimes for digital asset issuers and service providers to operate across the bloc. It also mentions proposed packages, such as legislative plans for a digital euro, as examples of putting the EU at the “global forefront.”

“In this respect, the EU will need to continue ensuring a proper application of financial services rules and, if necessary, strengthen its supervisory powers,” the document said.

With the adoption of MiCA and the further scoping-in of crypto service providers’ activities through various other financial regulations, such as anti-money laundering measures, crypto is “now part of the broader financial industry in the EU and the relevant policy priorities in the sector,” the industry member said.

Although MiCA in its entirety is set to take effect this December, changes can still be made to the package in a second iteration, potentially bringing into its scope things such as decentralized finance (DeFi) that were left out of the first framework.

“Proposals such as strengthening supervisory powers can easily be imagined taking shape in a way that will also affect the crypto industry,” the crypto insider industry member added.

The FSC’s planned meeting will take place on April 10, where the main findings from the feedback will be presented, according to the document.