In a letter to 27 EU finance ministers, crypto companies urged policymakers to ensure that their regulations do not go beyond the rules of the global Financial Action Task Force (FATF).

To regulate the crypto world, EU lawmakers are working on several rules to tame the industry. The lawmakers last month voted to support new protections for tracing Bitcoin and other cryptocurrencies.

The 46 leading representatives of the European crypto industry and organisations rejected the call for new safeguards, saying that the proposals “will put every digital asset owner at risk” by leading to public disclosure of transaction details and wallet addresses. They noted that such action will reduce holders’ privacy and safety.

The letter calls for the EU to exclude decentralised projects, including decentralised financing or “DeFi,” from the requirements register as legal entities.

The crypto leaders also demanded that certain decentralized “stablecoins” should not be subject to the MiCA regulation.

The broader framework, known as MiCA, will regulate all issuers and service providers in the EU that deal with crypto assets.