Crypto will see regulatory transformation as the European Union prepares to vote on new regulations for cryptocurrency in the region.
The proposed Markets in Crypto Assets (MiCA) regulations aim to bring an end to the industry’s “wild west” era, which has been marked by high-profile collapses and a lack of consumer protection.
European Union lawmakers hope that the new regulations will restore trust in the bitcoin market and provide a more secure environment for investors.
MiCA: A New Era Of Regulation For Crypto In The EU
The regulations, set to go to a vote at the European Parliament today, would mark a major step forward in the passage of MiCA into law. If passed, the rules regarding digital currencies would come into force in July 2022, with other requirements following in January 2025, giving providers time to adjust to the new regulations.
Ernest Urtasun, a member of the European Parliament from Spain and one of the drafters of the regulation, sees the MiCA as a decisive step towards regulating the untamed realm of digital assets. According to Urtasun, the new legislation will put an end to the wild west era of uncontrolled crypto activities, providing more security and trust for investors.
Image: CoinChapter
MiCA is expected to bring much-needed clarity to the crypto industry, providing a unified regulatory framework that will promote transparency, accountability, and consumer protection.
It will also require firms to obtain authorization from national authorities, with a single point of entry to the EU market, making it easier for companies to offer their services across multiple countries.
Mixed Reactions From EU Lawmakers On MiCA
MiCA has garnered mixed reactions from EU lawmakers. While some have expressed support for the new rules, others have raised objections.
One of the supporters of MiCA is Irish MEP Chris MacManus, who emphasized the regulation’s focus on transparency and consumer protection. However, he also voiced his personal opinion that he has no interest in creating a market for crypto assets, which he believes can be used for criminal activities.
On the other hand, German MEP Gunnar Beck objected to MiCA, arguing that it would criminalize decentralized finance and establish a “total financial surveillance state.” He expressed concerns over the increased reporting requirements to relevant authorities.
Bitcoin (BTC) market cap nearly unchanged at $556 billion on the daily chart at TradingView.com
Despite some pushback from MEPs, the passing of MiCA would represent a significant step forward in regulating the cryptocurrency industry in Europe.
Its implementation would provide a framework for companies to operate within, potentially increasing trust and adoption of cryptocurrencies by institutional investors and the general public.
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