The European authorities have come to an agreement on a set of standards at a time when there is an increasing desire for stringent crypto regulation.
The Council and the Economic and Monetary Affairs Committee’s negotiators were able to reach a temporary political agreement on new regulations for cryptocurrencies and digital assets.
Provisions on supervision, consumer protection, and environmental protections will be included for crypto-assets as part of the Markets in Crypto-Assets (MiCA) guidelines.
A number of the most important clauses that were agreed upon are relevant to people who issue and trade crypto-assets. The guidelines address aspects of cryptocurrency transactions like transparency, disclosure, authorization, and oversight.
The new MiCA guidelines make it mandatory for crypto players to educate customers about the potential dangers, expenses, and fees linked with cryptocurrencies.
In addition, the new regulatory framework will regulate public offerings of crypto-assets, which will promote both the integrity of the market and the stability of the financial system.
However, there is not yet complete clarity with regard to features like NFTs, decentralized exchanges, and stablecoins. An advocate of cryptocurrencies named Patrick Hansen said that investors would still need to search for further clarification on those elements.
Please keep in mind that there is not yet complete clarity on any of these elements, so take the following remarks with a grain of salt.
A member of the European People’s Party named Stefan Berger referred to the MiCA guidelines as a successful European initiative. He went on to say that we are the first continent to have a regulation in place for crypto-assets.
In the crypto world’s equivalent of the Wild West, MiCA will be the organization that establishes worldwide standards. MiCA will provide a fair playing field for service providers, enforce high standards for customer protection, establish a unified market, and give legal certainty to crypto-asset issuers.
According to Berger, the implementation of tokens will have the same transformative effect on the global financial system as did the development of the common market in the 17th century.
According to him, today is the first time ever that dependable authorization and regulatory frameworks for new tokens are being built, and this is all thanks to the MiCA law.
02 Feb 2023
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