The cryptocurrency industry has had a busy week following all the regulatory proposals in the United States, the United Kingdom and Europe, from tougher rules in the European Union, which require companies to hold and share more information from users, to a possible favorable new legal framework in the U.K.
Big Tech had a quieter week than last week when the EU approved the Digital Markets Act, but regulators suggested that another law that will hold companies accountable for the content in their platforms may be approved soon. In the U.S., the Consumer Financial Protection Bureau (CFPB) announced new initiatives against repeat offenders and continued its fight against junk fees.
The Crypto Industry Asked for Rules; Lawmakers, Regulators Delivered
The U.K. is preparing a new regulatory regime to regulate the cryptocurrency market, focusing on stablecoins, that may be favorable for the industry. In the meantime, 12 companies providing crypto asset services could benefit from a deadline extension in a temporary licensing program for cryptocurrency firms that was expected to end Thursday (March 31). However, other companies that couldn’t obtain the full registration would need to stop their services in the U.K. by Friday (April 1).
Read more: UK to Propose New Crypto Rules While FCA Closes Registration
A European Parliament’s committee approved a proposal Thursday that would increase the information requirements that crypto asset providers will need to collect and share for each transaction. One of the most controversial amendments to the original draft was the removal of a “de minimis” rules for small transactions. The original version proposed was meant to apply to transfers worth 1,000 euros (about $1,100) or more, but under the new agreement, this “de minimis” rule has been scrapped — all the transactions will be subject to the new reporting requirements.
See more: EU Lawmakers to Vote on Tougher Crypto Transaction Requirements
Rep. Patrick Lynch of Massachusetts and four colleagues announced Monday (March 28) the “Electronic Currency And Secure Hardware Act” (ECASH Act) seeking to hand the responsibility for creating a digital currency to the Treasury Department rather than the Federal Reserve, which issues fiat dollars. The bill calls for eCash to “replicate the privacy-respecting features of physical cash” to the greatest extent possible, imposing no more anti-money laundering (AML) requirement than cash.
Read more: House Bill Calls for Creation of Crypto-Less, Privacy-First Digital Dollar
The European Central Bank (ECB) continues working on a digital euro. In a speech before the European Parliament Wednesday (March 30), Fabio Panetta, member of the board of the ECB, said several central banks around the world, including the Federal Reserve, the Bank of England (BOE) and the ECB, are discussing how to align their projects to have interoperable central bank digital currencies (CBDCs).
See more: ECB, Fed, BoE Work on an Interoperable CBDC
US Financial Consumer Watchdog Goes After Large Companies
CFPB Director Rohit Chopra urged regulators and enforcers, including the CFPB, to step up their game against repeat offenders — and in particular, against large financial institutions (FIs). Chopra said he wants to lead new efforts to increase enforcement and deterrence for big firms and small firms alike. The CFPB will still rely on penalties but is proposing new measures that resemble the remedies antitrust authorities have adopted against Big Tech, including structural remedies, divestitures and revocation of licenses.
Read more: CFPB’s Chopra Proposes Structural Remedies for Repeat Offenders
The CFPB also announced new actions regarding other enforcement priorities, its fight against “junk fees.” The organization extended its deadline to submit comments until April 11 after receiving more than 25,000 comments in less than three months. It also published new data regarding credit card late fees that suggest a decline in late fees and charges below the cap established by law.
See more: CFPB Extends ‘Junk Fees’ Deadline After Receiving 25,000 Comments
Big Tech Still Faces Headwinds From Europe
The EU is ready to leverage the political tailwind created by last week’s agreement on the Digital Markets Act to continue modernizing its competition regulations. EU Commissioner Margrethe Vestager said Monday that a deal between EU governments and EU parliamentarians on the Digital Services Act (DSA) might be reached next month. The main premise of the proposition is that what is prohibited in the real world should also be illegal online. It requires digital firms to do more to combat unlawful content or face fines of up to 6% of their global revenue.
Additionally, Vestager announced Thursday the review of Regulation 1/2003. She said this law is the cornerstone of European antitrust enforcement structure. The provisions of this rule specify how the EU regulator conducts dawn raids, pursues enforcement actions, assesses fines and other punishments, and allows enterprises under investigation the chance to be heard, among other things.
Read more: EU Competition Chief Hints at More Reforms on the Horizon
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