EU passes crypto-asset regulations The European Conservative

[ad_1]

The European Parliament has adopted its Markets in Crypto-Assets (MiCA) regulation.

EU News

MiCA was officially signed into law today by the President of the European Parliament, Roberta Metsola, and the Swedish Minister for Rural Affairs, Peter Kullgren (Sweden holds the Presidency of the Council of the EU atm).

Next steps: 1) Publication in the official journal of pic.twitter.com/qY8QPnEZ9A

— Patrick Hansen (@paddi_hansen) May 31, 2023

Defining a crypto-asset as a digital representation of value or rights that can be transferred and stored electronically, using distributed ledger technology or similar technology, the new regulations require issuers of such assets to comply with certain standards, including transparency criteria.

Service providers using crypto-assets, meanwhile, must register as such and comply with certain security standards, including criteria relating in particular to the fight against money laundering.

The highly publicized phenomenon of non-fungible tokens (NFTs), however, remains unsolved by MiCA. The same applies to decentralized finance, understood as financial services using automated protocols operating outside traditional institutions.

MEP Stefan Berger said:

This puts the EU at the forefront of the token economy with 10,000 different crypto assets. Consumers will be protected from deception and fraud, and the industry that was damaged by the FTX collapse will be able to regain confidence. Consumers will have all the information they need and all underlying risks associated with crypto-assets will need to be monitored.

As usual, the EU has spearheaded legislation on technologies which it is not a leader in creating value.

However, this does not mean that such regulation was not necessary. But it now remains to be seen how this impacts uses and shapes the market.

[ad_2]