By Hassan Mehmood (Saudi Arabia)
The European Union has been tightening the circle around the cryptocurrencies and DeFi sector since last year. To this end, the Markets in Crypto Asset or MiCA bill was presented and finalized in September.
As per the initial analysis of the legislative key, it seems that strict crypto regulations are lined up that have the potential to rewrite the crypto landscape.
The approval of the bill was seen as a critical development as it was passed by an overwhelming majority of 28 to 01 votes.
Thus far, the bill only needs to convert one more vote to get added to the legislation of the EU during its October round.
Thus far, the global cryptocurrency industry has been operating without taking reference from any financial regulators. Some cryptocurrency proponents see the addition of any legislature as an intervention by the government, and many dubs it as a retaliation to preserve the fiat currencies.
However, the new MiCA bill in the EU is going to impact every singular aspect of the trillion-dollar crypto industry, from NFTs to money laundering.
Also read:Some legal experts have dug up hidden laws that can get cryptocurrency influencers in trouble in lieu of market manipulation.
One such crypto geek is Patrick Hensen; he pointed out a hidden clause in MiCA that can set up cryptocurrency influencers against social media influencers for taking part in crypto-related promotions without full disclosure.
MiCA to Regulate Crypto Sector
At present, the EU has maintained that MiCA is going to enter the markets under the pretext of public interest. However, there are rising concerns that government could potentially turn DeFi forcibly into another centralized entity.
The influence of MiCA is going to expand to stablecoins and CASPs, which means unwarranted changes for exchanges and brokers. However, MiCA can also serve as a protective layer against financial crimes and fraud. On the other hand, MiCA representatives such as Stefan Berger have claimed that a regulatory framework is necessary if the EU wishes to head the world in crypto and blockchain innovations.
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