Key points:
- New EU Law To Try To Start To Reform The Crypto World
- Law To Include Strong Measures Against Market Abuse And Manipulation
- A key EU lawmaker stated the law will “put order in the Wild West of crypto assets”
A new European Union (EU) law was agreed upon on Thursday 30th June to regulate crypto assets. The new law is called Markets in Crypto-Assets (abbreviated to MiCA) and is an initial creation for the region of a wide-ranging regulatory framework for digital assets. The law is expected to come into force towards the end of 2023.
New EU Law To Try To Start To Reform The Crypto World
Thursday saw the EU lawmakers agree on new innovative regulation for controlling crypto assets. The new law is called MiCA, Markets in Crypto-Assets. This comes in the wake of the onset of the crypto winter and crypto freeze in 2022, which has seen numerous crypto industry exchanges and funds come under increasing pressure as the value of crypto assets has plummeted. Non-Fungible Tokens (NFTs), which symbolise ownership in digital assets such as art, were not included in the proposals.
Also Read: How Will Cryptocurrency Perform During A Recession?
Law To Include Strong Measures Against Market Abuse And Manipulation
The new law established the need for crypto issuers to issue a “white paper” which is a technical manifesto in order to register with the authorities, plus to keep appropriate reserves for stablecoins (cryptocurrencies pegged to the value of an asset such the Euro) akin to bank reserves. Although the regulations have been devised to make it tougher for various crypto industry players, like issuers of stablecoins and exchanges, MiCA has been largely welcomed within the industry as it offers crypto companies a single license to operate throughout the region, can promote acceptance by the more conventional banking system and importantly increase credibility.
A key EU lawmaker stated the law will “put order in the Wild West of crypto assets”
Stefan Berger, the European Parliament lawmaker who led negotiations said in a Tweet that Europe is the first continent with crypto asset regulation. He also stated, “Today, we put order in the Wild West of crypto assets and set clear rules for a harmonized market that will provide legal certainty for crypto asset issuers, guarantee equal rights for service providers and ensure high standards for consumers and investors.”
The Wild West has a New Sheriff!