In an online panel from Bundesblock (a German nonprofit that promotes blockchain in Germany), regulators discussed the details of the upcoming MiCA regulations, as well as a brief update on NFTs and stablecoins.
MiCA law, an impossible project?
On June 30, lawmakers released the initial MiCA agreement, which was quickly deemed by crypto-Twitter as “impossible.”
It included provisions such as established intervention powers for the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) over CASPs. This includes prohibiting or restricting any activity that is considered a threat to investors, market integrity or financial stability.
Stablecoins were of particular interest with €200 million of transactions per day and the need for full back-up reserves, among other things.
NFT and stablecoins are not affected by MiCA after all
Members of the German-based Bundesblock, also known as the German Blockchain Association, briefed the community on the upcoming crypto asset markets (MiCA) regulations during a virtual panel held on Thursday, September 1.
According to the panel, the final legal text of the long-awaited regulations is expected to be published in the next four to six weeks. However, non-fungible tokens (NFTs) and stablecoins are still not covered, while crypto asset service providers (CASPs) are under discussion.
European Union (EU) lawmakers initially agreed on the terms of MiCA, boasting that Europe is the first continent to decide to regulate crypto-assets. The goal of the law is to set specific guidelines for all EU member states on the regulation of crypto, as well as the licensing and operations of crypto companies.
Still under negotiation
So far, the final legal text has not yet been published, therefore, the details of MiCA are still on the table. Nevertheless, the legislation known so far has served as an example to lawmakers around the world.
The Bank of Korea has stated that the provisions of MiCA effectively protect EU users without too many limitations… But some members of the European Parliament do not necessarily agree with this view.
As a reminder, we did a cointerview with Eva Kaili, Vice President of the European Parliament, who talks about her vision of Blockchain.
As the continent awaits the final verdict from regulators, more crypto crackdowns are in the offing. The European Securities and Markets Authority (ESMA) recently issued a statement saying it is looking to collect more crypto data. Local authorities want “off-chain crypto data,” or data involving crypto-related transactions outside the blockchain.
Coming from a teaching background, I’ve become passionate about the world of Blockchain. I’m eager to learn more and share the fruit of my research through my articles.