EU’s new crypto landmark regulation will stop the rampant activities in the crypto market. It will restore some order in the industry, and as Stefan Berger, an EU lawmaker, states, it will “put order in the Wild West of crypto assets”. This will be the European Union’s first attempt to create a comprehensive set of laws for digital assets. And it is likely to protect investors from the boat load of scams and shady practices that are going on.
EU’s comprehensive crypto regulation
The new set of crypto laws is called “Markets in Crypto-Assets,” and has some robust rules for coins, exchanges, stablecoins, and tokens. Due to the current stablecoin fiasco, the same was on priority for the lawmakers as well. They have stated that coin issuers need to maintain reserves high enough to provide redemptions even in case of high withdrawals. At the same time, they are also restricted to 200 million Euros in transactions per day.
The ESMA (European Securities and Markets Authority) will have the right to manage, restrict and ban platforms if they seem to take investors’ protection lightly or affect market stability. These new crypto laws also shed light on environmental concerns. They say that firms and token issuers are required to report their energy consumption and impact on nature.
EU has also been concerned about money laundering, and the MiCA will make them even more difficult. Transfer of 1000 euros or more and wallets above the same threshold must be reported to the authorities by platforms.
What change will these new laws bring?
Once the MiCA is bought to action in 2024, it will reduce the regulatory differences between different nations in European Union. It will also allow companies to focus on complying with only one regulatory framework and work on their offerings more effectively. Authorities expect clear-cut laws will attract more companies to Europe.
At present, these new laws might seem to be strict, but they are needed to have a clean crypto space. After all, as crypto enthusiasts, we don’t want them to be used for harmful purposes.
What are your thoughts on the EU’s new crypto landmark regulation? And do you think it will help countries in European Union attract more crypto companies? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: FTX to acquire BlockFi for $25 million at a 99% discount.
