For a long time, the regulation of crypto has been a significant bone of contention with governments globally. Still, seeing that this market space has become a huge one, it has attracted many country’s heads of state to vest more interest in this digital currency explosion.
The acceptance of crypto as a medium of exchange by El Salvador in September 2021 contributed to raising the interest of the E.U. However, the MMF did give a strict note that the space is highly volatile, and failure to set regulatory laws might have an abysmal effect on its financial structure. It has made the American government look into establishing laws to regulate the crypto space in the U.S.
Russia is also considering setting regulatory laws in the crypto market rather than banning crypto trading.
The E.U. might find it challenging to work on the proposed bill due to the decentralized cryptocurrency and blockchain in general.
Endless Opportunities for Crypto Orgs. In E.U.’s MiCA
Stated in the recent news by Coinshare, MiCA’s proposal 2020 might get positive feedback from E.U.’S central Bank and Data protection Service in the coming months of 2021, also stating that the discussions and negotiations might be concluded between Quarter two and three of the year due to the rigorous process the E.U. has to go through with the legislation.
Markets in Crypto Assets (MiCA) might resume sometime in June and August 2024 to give the crypto market a transparent and reformative process.
MiCA becomes hugely important for the cryptocurrency market because it would significantly nullify the need to obey locally enacted laws and regulations as all of the E.U. though joined by the same E.U. parliamentary system, do not have exact legal and tax structure. In other words, organizations that may want to carry out transactions under a broader E.U. market of about 27 separate legal forms and many of these legal systems seem not to consider crypto a significant asset.
Companies operating crypto according to the set standards will be given a universal license by MiCA which would serve as their basis for operation. All such organizations and businesses will do so in any E.U. economic member states whether they can fully comply with the standards of any of the country’s legal frameworks.
This MiCA’s license serves as the ultimate access to do business and operate under E.U. with endless business and financial opportunities.
MiCA’s Benefits and Shortcomings
Though MiCA is remarkable for checkmating crypto operations and standards, bringing several digital payment assets and about four payment digital tokens into the limelight for Europeans except for security tokens as they are already undergoing E.U. ‘s review.
It is also credible for crypto exchangers as they seem to embrace the bill and want to see more unfolding of the legislation so they can operate freely in the space.
Its shortcomings also pull a punch as MiCA seems frustratingly slow with its process, thereby missing out on the fantastic opportunities present in DeFi technology.
Most and Generally, the effort of the E.U. to regulate the space is quite commendable.