EU Parliamentarian Eva Kaili’s Arrest a Setback for Cryptocurrency Advocacy

The arrest of European Parliamentarian and cryptocurrency champion Eva Kaili has been perceived as a significant blow to the crypto ecosystem by many in the blockchain industry. Kaili, vice president of the European Parliament, was apprehended on Dec. 10 by Belgian authorities as part of a corruption, money laundering, and criminal organization investigation involving Qatar and European policymakers.

According to reports, Belgian police confiscated €600,000 in cash along with computers and cell phones belonging to Kaili and three others implicated in the inquiry. She has since been suspended from her parliamentary duties, having served since 2014.

Kaili has long been an outspoken advocate for cryptocurrency and blockchain technology within the European Parliament, significantly influencing the governing body’s approach to the sector in recent years. Erwin Voloder, senior policy fellow at the European Blockchain Association, told Cointelegraph that while the claims against Kaili should not be minimized, her arrest removes a crucial voice in support of the cryptocurrency space.

Voloder emphasized Kaili’s pivotal role in spearheading the DLT Pilot Regime and her involvement in the 2016 Blockchain Resolution, as well as her advocacy for blockchain technology during the 2020 InvestEU proposal discussions.

Furthermore, she took the initiative to explore nonfungible tokens (NFTs) within the European Union’s recently adopted Markets in Crypto-Assets (MiCA) regulations, with her work viewed positively for the blockchain community at large.

Voloder pointed out the prevalence of “negative and uninformed arguments” against blockchain and Web3 technology observed at the German Bundestag in mid-December, indicating a similar trend at the EU level. He noted that ideology often overshadows objective perceptions of technology in today’s hyper-partisan political climate.

Concerns were raised regarding whether major macro events in the cryptocurrency industry, including the notable collapse of FTX, contributed to the negative branding of the ecosystem as “industry non grata” and widespread guilt by association. With Kaili’s departure from parliament, there is a void for a similarly passionate advocate for cryptocurrency regulation.

Despite these challenges, Voloder shared a hopeful outlook, referencing a recent workshop within the European Parliament where industry experts and commission officials exchanged diverse views on the sector. Additionally, he speculated that the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) might take the lead in developing a comprehensive framework for both the NFT and DeFi sectors, thus continuing the institution’s exploration of regulatory possibilities for cryptocurrency.