The European Union is preparing to roll out MiCA (European Union Markets in Crypto Assets), a series of regulations targeting the crypto sector in the European Economic Area.
After the MiCA law was finalized last September, the European Parliament voted in favor of the set of laws in October, however there is still one final voting session before the text is finally implemented.
Feedback on the implementation of MiCA
MiCA covers the entire crypto industry today, from cryptocurrency mining to stablecoins Passes through NFT’sAs well as the use of cryptocurrency in illegal activities such as money laundering. However, it is important to note that there are paragraphs, seemingly harmless, but which may affect influencers in the crypto sector.
Patrick Hansen, entrepreneur and CEO of Circle, posted a message on Twitter about one of these clauses. D’après le texte, les influenceurs du secteur crypto qui prendraient la parole sur les réseaux sociaux et qui, d’une manière confronts ou d’une autre, généreraient des profits à partir de cette prise de parole pouré sans le menéraiente prosecution.
In fact, with MiCA, this profit-taking by EU regulators will be considered market manipulation once the law takes effect. At the moment, there are no clear boundaries for this paragraph which can also be of interest to memes, including the most trivial ones.
There is also no information regarding the implementation of such a requirement in practice. But the general idea is that the EU wants to clean up.
Is the crypto ecosystem threatened by MiCA?
Initially, this will undoubtedly risk harming the cryptocurrency ecosystem, but in the long run it is possible that the sector will benefit from increased regulations. This is due to the growing strong demand from institutional investors who want to have a well-defined and, above all, sustainable legislative framework.
Regulators are confident that these regulations will make the crypto industry more attractive. In this regard, Stefan Berger, a German politician says:
“This regulatory process is essential if Europe is to become a significant player in the crypto landscape in the coming years.”
However, we note that MiCA risks posing a certain number of problems to decentralized finance, which is currently in full expansion, and this is in the name of consumer protection. There is a great danger that a challenge After this increase is concentrated in controls.
MiCA’s main objective remains focused on Money Launderingthe central point of the bill that would make most crypto companies follow the same rules as in the banking industry for example.
The regulators previously announced that companies that provide crypto services will be required to collect information during transfers of crypto assets, for both the sender and the recipient. The stated goal is to make it more difficult to use cryptocurrencies for criminal activities.
According to the latest information, MiCA has the potential to become effective and be systematically applied to the entire European crypto landscape by 2024.