Crypto Mufasa
Advertise
  • Crypto News
    • General News
    • Bitcoin News
    • Altcoin News
    • Ethereum News
  • NFT NEWS
  • Beginner Guides
  • Price Predictions
  • Crypto Prices
No Result
View All Result
  • Login
  • Register
  • Crypto News
    • General News
    • Bitcoin News
    • Altcoin News
    • Ethereum News
  • NFT NEWS
  • Beginner Guides
  • Price Predictions
  • Crypto Prices
No Result
View All Result
Crypto Mufasa
No Result
View All Result

Home » MiCA’s Impact On Global Crypto Regulation

MiCA’s Impact On Global Crypto Regulation

Hania by Hania
May 23, 2023
in General News
Reading Time: 4 mins read
A A
0
MiCA’s Impact On Global Crypto Regulation
Share on FacebookShare on Twitter
ADVERTISEMENT
Will MiCA’s introduction to the European market unleash numerous opportunities?

Markets in Crypto Assets (MiCA), which attempts to bring the mainly unregulated cryptocurrency markets under governmental regulation, is being marked as the first comprehensive set of laws in the history of the world.

It is a component of a larger digital finance package known as the “Digital Operational Resilience Act (DORA),” which aims to safeguard the financial services industry from fraud. DORA is anticipated to become law in July 2023, setting the stage for the regulations to gradually take effect by January 2025.

The European Union, with MiCA in the picture, has doubled down on how to regulate, instead of who is going to control the sector. This approach could prove to be a game-changer while the United States continues to struggle in the effort to figure out what digital assets are.

But the crucial query is how MiCA would affect the European cryptocurrency industry.

You May AlsoLike

Polymarket Bets

March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

March 1, 2025
Ethereum’s Pectra Upgrade

3 Essential Insights from Recent Developer Call on Ethereum’s Pectra Upgrade

March 1, 2025
Eliminating Europe Exit Concerns

The EU Council, which is made up of 27 member states, unanimously adopted MiCA, making it the first significant country in the world to have a licensing system for cryptocurrencies.

The fact that lawmakers have mostly abstained from using the “regulation-by-enforcement” strategy can be credited to the positive welcome that the EU’s strong regulatory system has received. As a result, in order to maintain their competitiveness in the international market, a number of other markets and jurisdictions have started to look to MiCA as a model. Countries including the UK, Australia, and Hong Kong are following in their footsteps.

The potential impact of MiCA on the regulatory environment of the broader crypto industry has been discussed by a number of specialists.

For example, Brinda Paul, Director of Compliance at Banxa, believes MiCA sets a high bar for consumer protection, which will greatly benefit clients from a more dependable and trustworthy crypto market. The executive further stated that “a rise in customer confidence has an opportunity to increase participation in the crypto economy”.

Its introduction is mainly expected to work as a catalyst by attracting both startups and well-known corporations, creating the ideal environment for greater healthy competition.

MiCA's Impact On Global Crypto Regulation

Regarding end-users, Laura Chaput, head of regulatory compliance at market maker Keyrock in Brussels, stated that regulations pertaining to governance will increase transparency, regulations pertaining to stablecoin issuers will give greater “confidence that their tokens are accurately reserved and redeemable, and protects against market manipulation will strengthen market integrity.”

However, for regulated organizations that have previously implemented strict KYC and AML procedures, adjustments won’t be particularly apparent or substantial. But according to Przemyslaw Kral of Zonda, users of unregulated or non-compliant exchanges may experience withdrawal problems and may be required to give additional information regarding their identity and source of cash.

Taking Action Against Market Abuse and Manipulation

There is legitimate speculation on how the alleged malpractices at FTX might have been avoided had MiCA been put into place sooner. In reality, Stefan Berger, a member of the European Parliament’s economics committee, earlier asserted that the implementation of MiCA as a universal set of regulatory norms would have avoided such a catastrophe.

Regarding this, Banxa’s Paul pointed out that MiCA introduces severe safeguards, such as disclosures of inside knowledge, strict prohibitions of insider dealing, the illegal release of inside information, and market manipulation, to create a secure, transparent, and fair crypto market.

It is realistic to assume that acquiring approval under the regulatory system will not be simple, and continuous controls implemented by competent authorities will necessitate significant and ongoing compliance activity on the part of the crypto service providers.

Chief Compliance Officer of CLC & Partners Tiana Whitehouse added,

“The EU’s current Market Abuse Regulation (MAR), which pertains to securities and derivatives, and MiCA are broadly similar. As a result of the new regulation, CASPs and other parties who facilitate crypto-asset trades in the EU are required to have sufficient safeguards to prevent and detect market abuse and manipulation.

The Bone of Contention

MiCA will be implemented in two phases. Stablecoins are the focus of the first 12-month phase-in term, while the rest of the industry is covered by the next 18-month phase-in period. For the time being, attention will be paid to its implementation, which requires providing a comprehensive set of rules for the cryptocurrency market.

The regulation’s overall goal is to control the issue of and delivery of services linked to digital assets and stablecoins. However, it has excluded several parts of the digital asset market from its scope. The non-fungible tokens are one example.

The NFT industry will probably still be affected by the rule despite not being subject to MiCA’s specific white paper requirements, according to Yuriy Brisov, co-founder and chief legal officer at IOGINALITY NFT Marketplace. He went on to say,

“By imposing AML/CTF rules on NFT marketplaces, MiCA could contribute to greater transparency and trust in the growing world of digital art, collectables, and more, elevating the NFT space in the process.”

Tags: crypto newsEUlawMiCAREGULATIONS
Share76Tweet48
ADVERTISEMENT
Previous Post

Hong Kong Will Enable Retail Consumers To Access Cryptocurrency Exchanges

Next Post

Ledger Key Recovery Service Halted Due To Backlash, Code Will Be Open-Sourced

Hania

Hania

Hania is a 30-year-old blogger who used to be a teacher before entering the world of writing. She is originally from India and has been writing blogs on various topics for 2 years now. Hania is particularly interested in exploring the intersections of finance, technology, and cryptocurrency. Her experience as a teacher has given her unique insights into the ways in which digital media can be used to facilitate learning and engagement. Through her writing, Hania hopes to share her knowledge and learning of crypto industry with everyone.

Related Posts

Polymarket Bets
General News

March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

March 1, 2025
Ethereum’s Pectra Upgrade
General News

3 Essential Insights from Recent Developer Call on Ethereum’s Pectra Upgrade

March 1, 2025
Cramer Suggests Saylor Should Plan for a Strategic Bitcoin Reserve
General News

Cramer Suggests Saylor Should Plan for a Strategic Bitcoin Reserve

February 28, 2025
MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana
Crypto Wallets

MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana

February 28, 2025
Bitcoin Bull Run Could Continue, says CryptoQuant CEO - Unless This Critical Threshold Is Breached
General News

Bitcoin Bull Run Could Continue, says CryptoQuant CEO – Unless This Critical Threshold Is Breached

February 28, 2025
Solana Futures Launch at CME Boosts Price Amid High Demand
General News

Solana Futures Launch at CME Boosts Price Amid High Demand

February 28, 2025
Next Post
Ledger Key Recovery Service Halted Due To Backlash, Code Will Be Open-Sourced

Ledger Key Recovery Service Halted Due To Backlash, Code Will Be Open-Sourced

Discussion about this post

Live Prices

You have not selected any currency to display

Stay Connected

You May Also Like

  • Bitcoin Halving Update: Bitwise CEO's $100k Price Projection Sparks Excitement

    Why the Bitcoin Halving Is Happening Sooner Than Anticipated

    239 shares
    Share 96 Tweet 60
  • MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana

    197 shares
    Share 79 Tweet 49
  • March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

    196 shares
    Share 78 Tweet 49
  • OKB Price Prediction 2023 – 2030: Will OKB reach $200?

    201 shares
    Share 80 Tweet 50
  • November’s Bitcoin Price Forecast: A Bullish Odyssey

    196 shares
    Share 78 Tweet 49
  • About Us
  • Contact Us
  • Work With Us
  • Privacy Policy
  • Terms Of Service

© 2022-2024 CryptoMufasa - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

*By registering into our website, you agree to the Terms Of Services and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • General News
  • Beginner Guides
  • Bitcoin News
  • Ethereum News
  • Altcoin News
  • NFT News
  • Price Predictions
  • Google News

© 2022-2024 CryptoMufasa - All Rights Reserved!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Don’t Miss Out on the Best in Crypto!

Stay ahead with a weekly digest of the top news and insights—no spam, no ads, just the essential updates delivered straight to your inbox. Subscribe now for valuable content you can trust!

johnsmith@example.com
subscribe to email

Never see this message again.