While the FTX scandal has dealt a major blow to the reputation of the cryptocurrency market, the arrest of Eva Kaili has just added fuel to the fire.
European Parliament “crypto queen” Eva Kaili was arrested on December 9 along with three other people. During the arrest, the police seized mobile phones, computers and over 600,000 euros. Prosecutors suspect Eva Kaili of pocketing money to lobby on behalf of Qatar, the host nation of the 2022 World Cup.
Similarly, several hundred thousand euros were found in a hotel room occupied by the MP, while 150,000 euros were seized in her apartment. As part of the investigation, authorities raided 19 homes, arrested Kaili’s father and blocked her family’s funds in Greece.
Since his arrest, the famous MP to decline the allegations and assures that “it has nothing to do with the corruption case involving Qatar”. But between the case Eva Kaili, one of the greatest female voices in cryptocurrenciesthe collapse of Terraform Labs and the 🔥 FTX scandal, we really can’t blame anyone who is afraid to set foot in the cryptocurrency market.
2023: a crucial year for the regulation of the crypto market
Eva Kaili was one of the few deputies of the left defend cryptocurrencies. Between January and December 2022, you were one of the fourteen EU Vice-Presidents. The former TV presenter was also known for her charisma and her unfailing elegance.
“He was a defender [de la crypto], but he was rather isolated on the left side of the political spectrum,” Paul Tang, an MP for the Dutch Socialist Party, told Politico newspaper. “If there is a lesson to be drawn from this affair, it is that of the next partisan [de la crypto] he must have nothing to reproach himself for”.
The coming year will also be crucial for cryptocurrencies. đź“ś The MiCa bill that aims to establish common standards for cryptocurrencies in Europe is expected to be voted on next April and enter into force no earlier than the end of 2024. However, some lawmakers, including the governor of the Banque de France, are already calling for greater oversight of the industry.
On January 9, Marie-Anne Barbat Layani, president of the Financial Market Authority (MFA), raised the possibility of imposing licenses on 🏢 cryptocurrency companies operating on French territory. “The MFA, like the Parliament, is calling for an acceleration of the transition to the compulsory licensing regime for unregistered suppliers,” she said.
It is therefore unlikely that France will wait for the entry into force of the MiCa law to tighten the noose on the cryptocurrency market. Likewise, calls for action are likely to multiply within the European Parliament, such as that of the governor of the Banque de France.
Cryptocurrency regulation: the debate heats up
Paul Tang, centre-left Dutch MP, also advocated stricter control of đź‘› crypto wallets not hosted (or non-custodians). According to him, “we need to verify the identity of non-hosted wallet holders to prevent the money from falling into the hands of criminals.”
Even the deputy warned against cryptocurrency mixing services, like 🌪️ Cash tornado. We remind you that a crypto mixer or tumbler is a tool that allows cryptoassets to be divided into smaller quantities and “mixed” with other transactions in order to cover their tracks and preserve the anonymity of users.
In a tweeted thread posted last March, Paul Tang She said :
“These tools are important in the fight against money laundering/terrorism financing. Some cryptolobists won’t like doing this extra work. But being part of our society comes with obligations. Banks are already battling illicit funds. Our crypto friends should do the same too.”
However, last July, Paul Tang and his colleagues failed to include non-hosted wallets in anti-money laundering checks. At the time, the Dutch MP said so “we cannot focus only on the regulated sector and leave the door open to anonymous cryptocurrency flows”.
Due to his hostile stance towards the digital asset market, Paul Tang has drawn the ire of the cryptocurrency community in 2022.
The right balance between investor protection and innovation
Lidia Periera, a right-wing Portuguese MP, calls on lawmakers to do so “take the cryptocurrency market seriously”. In your opinion, the EU must strike the right balance between protecting consumers and maximizing opportunities. In an interview with Tech A Look, the MP said: “On the one hand, we need to provide investor protection. On the other hand, we have enormous innovation potential in the European market”. “We can’t just be on one side of the fence,” he added.
Dr. Stefan Berger could also become one of the biggest advocates of cryptocurrencies in the European Parliament. Just like Lidia Pereira, his views are both moderate and pro-crypto. Indeed, the German MEP asks “a balance between clear and fair regulation and innovation”. In a blog post, the MEP highlighted the need to develop a Euro CBDC and create a crypto environment.
“The digital euro will complement cash, it will not replace it”, reads the article. “Europe must set standards instead of following others, and a digital euro would be proof of progress and integration in Europe. Meanwhile, the monetary authorities are called upon to restore confidence in the financial system,” underlines Dr. Berger.
Moral of the story: of course, a single apple can spoil an entire basket, but associating the image of an entire sector with just a few of its representatives is anything but reasonable.
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