Like other countries around the world the European Union is working on regulatory frameworks to tame the crypto sector.
In a letter sent to 27 EU finance ministers on April 13, crypto businesses asked policymakers to ensure their regulations did not go beyond rules already in place under the global Financial Action Task Force. The FATF sets the standards for combating money laundering.
Last month EU lawmakers voted to back new safeguards for tracing cryptocurrencies. The new rules would require crypto firms to gather and hold information on who is involved in crypto transfers.
The letter asked that the EU excludes decentralized projects, from requirements to register as legal entities. It also said that certain decentralized stablecoins should not be subject to the new regulation.
"There hasn't been strong enough or coordinated efforts across our industry in Europe", Diana Biggs, chief security officer at DeFi Technologies said. Biggs has also organized the letter.