The arrest of MEP and cryptocurrency advocate Eva Kaili has been described as a major blow to the ecosystem by key participants in the blockchain industry.
Kaili, one of the 14 vice-presidents of the European Parliament, was arrested and charged by Belgian prosecutors on 10 December. Prosecutors are investigating allegations of corruption, money laundering and criminal organization involving Qatari and high-level European politicians.
Belgian police are said to have confiscated €600,000 in cash, computers and mobile phones from Kaili and three other people. Kaili has since been expelled from the European Parliament, of which she has been a member since 2014.
Kaili was one strong supporter of cryptocurrencies and blockchain technology in the European Parliament and has played an important role in the EU’s approach to the sector in recent years.
Erwin Voloder, a senior policy fellow at the European Blockchain Association, told Cointelegraph that the allegations against Kaili cannot be understated, but admits her arrest has silenced a much-needed voice in support of the cryptocurrency industry.
Voloder also highlighted Kaili’s role in leading the DLT pilot scheme and the 2016 Blockchain Resolution, as well as her role as shadow rapporteur. You have campaigned to give blockchain technology a higher profile in the InvestEU 2020 proposals.
Kaili also ensured that NFTs are being explored under the recently approved Crypto Asset Markets Regulation (MiCA) by the European Union. Veloder said Kaili’s efforts to explore NFTs from the perspective of financial services and industrial applications have been good for the blockchain space.
Voloder spoke to the German Bundestag in mid-December about what he believes are “negative and uninformed arguments” against blockchain and Web3 technology. The economist believes that this negative sentiment is widespread across the continent.
“I think we have a similar problem at the European level, as ideology can play a huge role in how a particular technology or industry is perceived, especially in today’s bipartisan climate.”
Voloder also questioned whether macro events in the cryptocurrency space, such as the collapse of FTX, have played a role in the ecosystem being considered an “undesirable sector”.
Kaili’s expulsion from Parliament means that a staunch and passionate cryptocurrency advocate is now absent from EU regulatory considerations. However, Voloder is optimistic and refers to a seminar that was recently held in the European Parliament. On this occasion, industry experts and Commission officials presented differing views on the sector.
Voloder also speculated that the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs could also take on the task of developing a framework for NFT and DeFi related areas.
