Circle Policy Lead Warns of Misleading EU Crypto Registry Update

Patrick Hansen, the Policy Lead at stablecoin issuer Circle released a post on X warning his followers of a false European Union (EU) news circulating the internet.

Circle Exec Clears Air on EU Commission Plans

The rumor has to do with the European Union planning to develop an EU-wide asset registry for cash, crypto, and arts but Hansen noted that it is another round of misleading EU news. He highlighted a statement by the EU Commission spokesman Eric Mamer debunking the rumor.

1/ Another round of misleading EU news freaking everyone out this week – on the EU-wide asset registry for cash, crypto, art etc.

Be cautious with EU-related news on X, even if shared by large accounts.

TL/DR: No EU wide wealth registry is being planned or developed 🧵 pic.twitter.com/CHcpwu6x43

— Patrick Hansen (@paddi_hansen) July 27, 2024

Noteworthy, Mamer made it clear that the EU Commission has no intention of setting up a central database for the assets of citizens.

The EU spokesman confirmed that the bloc is currently undertaking a study on the practice of registering assets in the EU member states. However, it does not include plans to develop such wealth registry nor is the Commission planning to launch any activity based on the result obtained. Instead, the study will provide insights into the mechanisms that exist in the 27 member states of the EU.

Similarly, the Circle recalled that the EU Commission commissioned a study three years ago to investigate the “feasibility for a European asset registry in the context of the fight against money laundering and tax evasion”. The value of the public tender turned out to be €400,000 which is currently equivalent to $434,860. The result from the study is available for public viewing, so is the conclusion on operational feasibility.

“The creation of fully-fledged registries denoting ownership and value of assets, which are comprehensive and complete, was mostly found to be operationally not feasible for this group of assets.”

The Circle executive advise his followers to be cautious with the EU news they find on X, even if its comes from “large accounts.” This generally applies to news about other regions found on X. Every time, bad actors or clout chasers post false news to generate confusion or excitement from their viewers.

Implementing MICA in EU-based Firms And Businesses

For now, the EU is focused on the implementation of Market in Crypto Asset (MiCA).

Several financial service providers in the region are complying with the rule as it stands. The Bank of Italy released guidelines for the EU’s MiCA regulation a few weeks ago.

To make the transition easier, the European Securities and Market Authority (ESMA) announced an updated Q&A on certain guidelines including the provision of staking services under MiCA.

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