AIBC

MiCA: EU reins in Blockchain sector with new set of regulations

Posted:Jul 01, 2022 10:06 Category: Crypto , Europe , Regulatory , Posted by
Kyle Galea

Officers and representatives from the European parliament and EU states worked out a settlement on the 30th of June that contained measures to regulate the market with regulations in place for market misuse and control, as well as requiring that crypto firms to provide data pertaining to the ecological effect of their resources.

Stefan Berger, the German MEP who chaired the negotiations for the parliament as a whole, elaborated on the current state of the market and the necessity to provide legal clarity on this maverick market.

“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.”

The latter comment was in reference to the recent crash in the Blockchain market with the total value of the market going from $3 trillion to a (comparatively) miserly $900 billion.

These regulations, referred to as the Markets in Crypto Assets (MiCA) law, are set to come into force around the end of 2023. While international regulation varies from a wholehearted drive for mass adoption as seen in Dubai to complete and utter embargo on anything Blockchain as seen in China, large swaths of the globe remain without clear regulations pertaining to the emerging technology.

The MiCA law is set to be the first in-depth regime of regulations pertaining to the Blockchain and is set to give issuers of crypto assets and providers of parallel services a “passport” allowing them to operate across the Union. The legislation also covered areas of energy consumption, counters to market manipulation and protections from abuse.

Berger himself elaborated that “[The representatives] have agreed that crypto asset providers should in future disclose the energy consumption and environmental impact of assets”

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