Europe Considers “Europeum” Blockchain, A Regulatory-Compliant Network For Crypto Transactions ⋆ ZyCrypto
- The platform aims to use blockchain technology for public services and supply chain management.
- It is a complement to MiCA – a piece of EU legislation – which is expected to pass into law in April.
As the EU’s Market for Crypto Assets (MiCA) legislation nears becoming law, politicians in the region, led by Belgium, are going one step further: creating a proprietary blockchain.
Europeum’s bespoke digital network, according to information shared with Coindesk by Belgian digital minister Mathieu Michel, will enable the capture of real estate data, driver’s licenses or professional documents in a regulatory manner.
Cryptocurrency projects, mainly in the financial area, have recently witnessed fraud and exit scams, or blanket pulling, in addition to the high-profile collapse of significant projects, which caused investors heavy losses. According to Michel, a shift to public services and supply chain management can reduce such cases.
The MiCA legislation, which, if passed into law in April, would be implemented in all 27 EU member states, has set unprecedented demands for crypto transparency. Among them – mandate all crypto firms to disclose their price processes and trading volumes in real time. Exchanges will also be required to segregate their funds from their customers’ funds to avert another fallout like that seen with FTX.
MiCA’s Universal Licensing
The most important part of the MiCA draft is the introduction of universal licensing for EU member states. Currently, some of the EU countries have partial licensing requirements. France, for example, requires crypto firms offering custody services to be licensed, but those offering non-custodial services have an option not to register.
There is also the banking and insurance clause regarding cryptocurrency firms, the former of which has been a cause of unrest in the sector, especially in the US, which recently closed three crypto-friendly banks. Last week US authorities shut down Silicon Valley Bank and Signature Banks, with Silvergate announcing voluntary liquidation.
In addition to the MiCA and Europeum proposal, last month Belgium launched the Blockchain4Belgium initiative to enable the players in the sector to send recommendations to the government on blockchain adoption. Michel noted that the initiative aims to allow Brussels to create jobs, increase the retention of human talent and cement the country’s digital sovereignty.
One of the challenges facing blockchain entrepreneurs in Belgium is related to the tax system, an aspect that Michel said was working to clarify how the virtual income could be taxed.
