German government calls for new approach to crypto in coalition agreement

What

The new German government has cited crypto in its coalition agreement, advocating for an equal playing field between traditional finance and “innovative business models.”

Why 

According to a rough translation of the 177-page agreement published on Nov 24, the government intends to make European financial market supervisory law fit for digitisation, complex group structures and new business models.

What next

The agreement also calls for joint European supervision for the crypto sector and obliges crypto asset service providers to consistently identify the beneficial owners.

The new German coalition is aiming to make the “European financial market supervisory law” fit for crypto-assets and businesses.

The document states the EU supervisory authority should “not only take care of the traditional financial sector but also prevent the misuse of crypto values for money laundering and terrorist financing.”

Elsewhere on the continent, the European Council —which guides the EU’s political agenda — adopted a proposal named the ‘Regulation on Markets in Crypto Assets (MiCA). If enacted, MICA will subject crypto assets issuers to more stringent requirements, but non fungible tokens (NFTs) and utility tokens will fall outside the scope of the regulation.

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