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.
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.”
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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