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The European Union approved the regulatory conditions for the cryptocurrency market
01.07.2022
The international business newspaper Financial Times writes that an agreement has been reached regarding the regulatory conditions for the crypto market within the MiCA directive in Europe.
New rules were created, about which the BeInCrypto portal writes. Their essence is that stablecoin issuers must be characterized by a liquid reserve. Representative offices in the European Union can open them. In addition, it is important that they are registered with the European Banking Organization. If we are talking about a cryptocurrency without issuers, then it is not subject to regulatory supervision. But, according to Christine Lagarde (head of the European Central Bank), this nuance can be corrected in the second MiCA package. These rules will come into effect by 2024.
The European Securities Regulatory Authority within the MiCA will have the ability to impose prohibitions or restrictions on the activities of crypto companies. But certain steps will be taken only if the work of a particular organization affects the financial condition of the market and its integrity.
The updated rules will also affect the cryptocurrency turnover. With the introduction of MiCA, in a situation where the numerical value of the cryptocurrency to be transferred is more than 1000 euros, cryptocurrency exchanges will be forced to ask customers to transfer funds to a private wallet.
MiCA will also focus on such problems of the cryptocurrency market as environmental ones. In particular, crypto businesses will need to reflect information about the consumption of electricity, as well as what happens to the environment under the influence of cryptocurrency.
Once again, we remind you that the first MiCA package does not contain NFT. However, the European Commission may review this point in the coming months.
New rules were created, about which the BeInCrypto portal writes. Their essence is that stablecoin issuers must be characterized by a liquid reserve. Representative offices in the European Union can open them. In addition, it is important that they are registered with the European Banking Organization. If we are talking about a cryptocurrency without issuers, then it is not subject to regulatory supervision. But, according to Christine Lagarde (head of the European Central Bank), this nuance can be corrected in the second MiCA package. These rules will come into effect by 2024.
The European Securities Regulatory Authority within the MiCA will have the ability to impose prohibitions or restrictions on the activities of crypto companies. But certain steps will be taken only if the work of a particular organization affects the financial condition of the market and its integrity.
The updated rules will also affect the cryptocurrency turnover. With the introduction of MiCA, in a situation where the numerical value of the cryptocurrency to be transferred is more than 1000 euros, cryptocurrency exchanges will be forced to ask customers to transfer funds to a private wallet.
MiCA will also focus on such problems of the cryptocurrency market as environmental ones. In particular, crypto businesses will need to reflect information about the consumption of electricity, as well as what happens to the environment under the influence of cryptocurrency.
Once again, we remind you that the first MiCA package does not contain NFT. However, the European Commission may review this point in the coming months.
