Fun

EU Makes Deal on MiCA Legislation to Regulate Crypto Markets

News Feed - 2022-07-03 06:07:40

EU Makes Deal on MiCA Legislation to Regulate Crypto Markets


Representatives of key European Union (EU) institutions and member states reached an agreement on the Markets in Crypto Assets regulatory proposal. The progress in the negotiations over the comprehensive legal framework for the Union’s crypto space comes after earlier this week European officials agreed to adopt a set of anti-money laundering rules for cryptocurrency transactions. EU Parliament, Council, Commission Agree to Tame ‘Wild West’ Crypto Market


Negotiators representing the major institutional bodies of the European Union agreed to implement the landmark Markets in Crypto Assets (MiCA) legislation across the 27-strong bloc. It will introduce licensing for crypto companies and safeguards for their customers. The agreement follows a consensus on anti-money laundering regulations for cryptocurrencies.


Behind the deal are the European Parliament, Commission, and Council, the three participants in the EU’s complex legislative process. To become law, MiCA will now need the approval of the Parliament and the governments of individual states. The breakthrough in the trilogue was announced on social media by Stefan Berger, the rapporteur for the package.


“Europe is the first continent with crypto asset regulation,” Berger exclaimed in a tweet while pointing out that a controversial proposal to ban technologies such as the energy-intensive proof-of-work (PoW) mining is not part of the latest draft. Quoted by Reuters, the German center-right lawmaker who led the negotiations, also stated: Today we put order in the Wild West of crypto assets and set clear rules for a harmonized market. The recent fall in the value of digital currencies shows us how highly risky and speculative they are and that it is fundamental to act.


Crypto markets slumped this year, following last month’s collapse of the terrausd (UST) stablecoin and serious problems at major crypto firms like Celsius Network,3AC, and Voyager Digital. Bitcoin (BTC), the cryptocurrency with the largest market cap, has lost 70% of its value since its November record-high. It’s trading at a little over $19,000 per coin at the time of writing. MiCA to Improve Customer Protection in Europe’s Crypto Space


The important regulation confirms the European Union’s role as a standard-setter for digital issues, the EU said. MiCA will give crypto issuers and providers of related services a “passport” to serve clients across the Union while obliging them to meet “strong requirements to protect consumers’ wallets and become liable in case they lose investors,” a statement emphasized.


Furthermore, stablecoin holders will be offered the security of a free of charge claim at any moment, a move that according to some in industry, such as the Blockchain for Europe lobby group, may lead to a situation in which “stablecoins will basically have no ways to be profitable.”


The agreement excludes non-fungible tokens (NFTs), “except if they fall under existing crypto-asset categories.” Authorities in Brussels will now have 18 months to decide if separate regulations are needed for them.


National regulators will be responsible for issuing licenses to crypto businesses. At the same time, they will have to regularly inform the European Securities and Markets Authority (ESMA) about the authorization of large operators.


The latter has been tasked to develop standards for crypto companies to disclose information regarding their environmental and climate footprint, a compromise arrangement allowing the scrapping of the idea to ban the provision of services for PoW coins. Tags in this story agreement, Compromise, Crypto, crypto assets, Crypto markets, Cryptocurrencies, Cryptocurrency, Deal, EU, Europe, european, European Union, framework, Law, Legislation, MiCA, NFTs, Regulations, rules, Stablecoins, Tokens


What effects do you expect MiCA to have on the crypto industry in the European Union? Share your thoughts on the subject in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Senator Indira Kempis Proposes Bill to Make Bitcoin Legal Tender in Mexico REGULATION | 15 hours ago US Regulator Charges South African MTI and Its Operator With $1.7 Billion Fraud Involving Bitcoin REGULATION | 21 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleReport: Embattled Crypto Hedge Fund Three Arrows Capital Files for Chapter 15 Bankruptcy Show comments More Popular NewsIn Case You Missed ItNFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales


Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms

News Feed

Grayscale Report Sees Metaverse as Potential $1 Trillion Business Opportunity
Grayscale Report Sees Metaverse as Potential $1 Trillion Business Opportunity Grayscale, a leading cryptocurrency asset manager, seems to have set its gaze on the metaverse as a bu
Bitcoin, Ethereum Technical Analysis: ETH Below $1,900 as Ethereum Foundation Comments on Gas Fees
Bitcoin, Ethereum Technical Analysis: ETH Below $1,900 as Ethereum Foundation Comments on Gas Fees Ethereum was once again trading below $1,900 during Thursday’s session, as
ECB President Lagarde Warns of ‘Major Disaster’ If US Defaults on Debt Obligations
ECB President Lagarde Warns of ‘Major Disaster’ If US Defaults on Debt Obligations There is a lot of discussion lately about the U.S. government’s debt ceiling and whethe
William Suberg10 hours agoBitcoin faces elevated CPI, with BTC price tackling $26.8K focal pointCPI joins macro data coming in higher than predicted, something not conducive to BTC price upside, Bitcoin analysts continu
Analyst Says “The Clock Is Ticking” For XRP — Here’s Why
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Tristan Greene2 hours agoChatGPT can now browse the internet, no longer limited to info from 2021The browsing update is limited to Plus and Enterprise subscribers for now but will roll out to all users “soon,” says O
Optimism offloads $90M worth of tokens in private deal
Ezra Reguerra12 hours agoOptimism offloads $90M worth of tokens in private dealOptimism also sold 116 million OP tokens in another private sale held back in September 2023.1056 Total views13 Total sharesListen to article
Amaka Nwaokocha22 minutes agoDigital yuan integration introduced to Chinese business air travelThe Civil Aviation Administration and China Merchants Bank said passengers will be able to utilize the digital currency to ac
Jim Rogers, Mark Cuban, Peter Schiff Will ‘Go All-In’ on Bitcoin — Max Keiser
Jim Rogers, Mark Cuban, Peter Schiff Will "Go All-In" on Bitcoin — Max KeiserMax Keiser believes that bitcoin naysayers like Jim Rogers, Mark Cuban, and Peter Schiff will go all-i
BIS and 7 central banks to explore asset tokenization through Project Agora
Zhiyuan Sun7 hours agoBIS and 7 central banks to explore asset tokenization through Project AgoraThe proof-of-concept projects seek to create a centralized platform for cross-border CBDC payments and tokenized money tran
Is Bitcoin Peak In? This Data Suggests Otherwise, Analytics Firm Says
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
VC Roundup: Are VCs returning to crypto? February suggests renewed confidence
Ana Paula Pereira3 hours agoVC Roundup: Are VCs returning to crypto? February suggests renewed confidenceIn February, a diverse group of crypto startups announced recent funding raises, signaling that investors’ intere