New Crypto Rules In Europe: A Global Standard For Regulation?

Anvesh Reddy
July 1, 2022
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crypto regulation

At a time when there is rising demand for strict crypto regulation, European authorities agreed on a set of rules. The Economic and Monetary Affairs Committee negotiators struck a provisional political agreement with the Council on new rules on crypto-assets.

Europe’s New Crypto Rules Provide Transparency

The Markets in Crypto-Assets (MiCA) rules will introduce provisions on supervision, consumer protection and environmental safeguards for crypto-assets. Among the key provisions agreed are applicable for those issuing and trading crypto-assets. The rules cover transparency, disclosure, authorization and supervision of crypto transactions.

The new MiCA rules mandate crypto players to inform consumers about risks, costs and charges associated with crypto. Also, the new legal framework will support market integrity and financial stability by regulating public offers of crypto-assets.

However, there is no full clarity with respect to aspects like NFTs, DeFi, and stablecoins. Patrick Hansen, a crypto enthusiast, said investors would still need to look for further clarity on those aspects.

“There is not 100% clarity on all the aspects yet, so please take these points with a grain of salt.”

MiCA, A Global Standard Setter For Crypto Regulation

Stefan Berger, a member of the European People’s Party, said MiCA rules were a European success. We are the first continent to have a crypto-asset regulation, he added.

“In the Wild West of the crypto-world, MiCA will be a global standard setter. MiCA will ensure a harmonized market, provide legal certainty for crypto-asset issuers, guarantee a level playing field for service providers and ensure high standards for costumer protection.”

Berger stated that tokenization will be as ground breaking for the financial world as the introduction of the joint market was in the 17th century. With the MiCA regulation, reliable authorization and supervisory structures for new tokens are now being created for the first time, he added.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.