EU’s MiCA legislation is a landmark moment for crypto
The passing of the Markets in Crypto Act, or MiCA, by the EU Parliament last week is a landmark moment for crypto and could help push up prices for Bitcoin.
According to MEP Stefan Berger, Europe is now the “first continent with comprehensive regulation for crypto assets.”
As I was quoted by Financial Mirror, Pound Sterling Live, Fintech Magazine, African Eye Report and Bitcoin Insider, amongst other media, the so-called MiCA legislation means the EU will have an integrated approach to the regulation of crypto assets across all 27 member states. As such, businesses approved in one country can ‘passport’ operations to other countries.
Naturally, this is a landmark moment for the cryptoverse. It highlights the maturing of the market and how digital currencies are now mainstream.
We’re seeing crypto has now come of age in Europe as it’s being held to the same standards as the rest of the financial system.
I’ve long been a crypto advocate and have been lobbying authorities about this for some time. Increased regulatory scrutiny is needed as cryptocurrencies are set to play an even bigger role in the global financial system.
As such, we’re delighted that the EU voted 517 to 38 in favour of the Markets in Crypto Act, as it aims to reduce risks for consumers purchasing crypto assets. Therefore, providers can be liable if they lose investors’ crypto assets.
Investor confidence in the market will also increase with more transparent and consistent legislation in place. This will attract more institutional investors who bring massive levels of capital, experience and influence, which can help boost demand and hike prices in the long term.
In addition, the regulations will help to decrease fraudulent activities in the market, which will bolster the industry’s reputation and increase mass adoption.
The new regulations are due to come into effect as of 2024, putting the EU ahead of the US and UK, which are yet to introduce crypto legislation.
That said, the US and UK now have the chance to catch up with the EU in regard to crypto regulation, which must be welcomed. This legislation will protect investors, deal with cryptocurrency criminality, and reduce the possibility of disrupting global financial stability.
Of course, digital is the inevitable future of finance. Consequently, the proactive work being carried out by governments and central banks, amongst others, in terms of crypto must be supported.