MiCA comes hot in October, NFTs not in focus: EU regulators
Members of the Germany-based Bundesblock, otherwise known as the German Blockchain Association, updated the community on the upcoming Markets in Crypto-Assets (MiCA) regulations in a virtual panel held on Thursday, September 1st.
According to the panel, the final legal text of the long-awaited regulations will be released within the next four to six weeks. However, non-fungible tokens (NFTs) and stablecoins are still not covered, while crypto-asset service providers (CASPs) are discussed extensively.
@bundesblock panel discussion of #MiCAR with @DrStefanBerger, @SchildtMoritz, @paddi_hansen, moderated by Alireza Siadat. Key takeaways: final text of MiCAR available in 4-6 weeks, MiCAR fully applicable from 2024, #NFTs & existing stablecoins not covered but #CASP In sight. pic.twitter.com/18wQDn2n5o
— Nina Siedler (@ninsie3) 1 September 2022
Legislators in the European Union (EU) initially agreed on the MiCA terms, boasting that Europe was the first continent with specific regulations on crypto-assets. The purpose of the law is to set specific guidelines for all EU member states regarding crypto regulation, as well as the licensing and operation of crypto companies.
On June 30, lawmakers released the first agreement, which was quickly deemed by crypto-Twitter as “unworkable.”
It included provisions which established the intervention powers of the European Securities and Market Authority (ESMA) and the European Bank Authority (EBA) over CASPs. This involves prohibiting or restricting any activity that is considered a threat to investors, market integrity or financial stability.
Stablecoins were of particular interest with one of 200 million euros in transactions per day and the need to have full reserves, among other things.
Related: Talking to Eva Kaili, VP of the European Parliament, about MiCA regulation
Until now, the final legal text has not yet been released, so the finer details of MiCA are still on the table. Nevertheless, the hitherto known legislation has served as an example for legislators worldwide.
The Bank of Korea said MiCA provisions effectively protected EU users without too many restrictions, which could hinder innovation.
As the continent awaits the final verdict from regulators, further crypto crackdowns are in sight. The European Securities and Markets Authority (ESMA) recently issued a statement that it is looking to collect more crypto data. Local authorities want “crypto off-chain data” or data involving crypto-related transactions outside the blockchain.
