The European Commission has now officially published the announced Markets-in-Crypto-Assets Regulation. It is intended to regulate the trading of crypto values uniformly across Europe so that the EU can assume a global pioneering role in this market segment.
On September 24th, the European Commission passed the regulation “Markets in Crypto Assets(MiCA) „published. It is intended to represent a uniform regulation of crypto values that the EU member states have to apply without being implemented in national law. With a transition period of 18 months, the law can be expected to become legally binding at the end of 2022. The planned regulation has already been available to BTC-ECHO for two weeks , with which Dr. Sven Hildebrandt dealt for the first time.
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The ordinance deals with the issue, trading, licensing requirements and supervisory powers of crypto values. Crypto values are digital values that are not or embody claims, but rather represent their own value. Usually, such values are understood to be digital values such as Bitcoin (BTC) or Ether (ETH).
But utility tokens, i.e. tokens representing usage and access rights, also fall under the EU regulation. In addition, so-called „asset-referenced“ tokens are affected: stable coins that represent fiat currencies must be prepared for stricter requirements. Significant stable coins such as the planned „Facebook coin“ Libra are subject to even stricter regulations. The reservations about stable coins are evident as, if the general public accepts them as a means of payment, they could compete with the euro.
The European Commission sees financial stability and the financial sovereignty of the central banks at risk from this type of crypto value. If a stable coin is based on a single fiat currency such as the euro (EUR) or US dollar (USD), it is referred to as an „e-money token“.
What are the planned crypto regulations?
The document is part of the European Commission’s „Digital Finance Package“. Since the economic acceptance of crypto values is foreseeable, the institution wants to clarify rights and obligations, capital issues and activities. A supervisory authority is to be installed at the European level instead of at the national level. One would like to reduce fraud and theft based on blockchain technology.
Issuers will also publish a white paper prior to a token launch. However, this strategy paper does not have to be checked or approved by any authority. Small providers and offers for professional investors are exempt from this obligation. Tokens that are created through mining or that an issuer issues free of charge also do not require a white paper.
The 168-page paper also defines security standards and specifies requirements for the IT infrastructure. Service providers such as crypto exchanges, brokers and custodians only need to obtain approval from an authority – then you can operate throughout the EU. Expectations of them have not yet been specified.