The European Union they reached a preliminary agreement on it yesterday Markets in Crypto Assets (MiCA) Directive after years of debate over how to regulate the digital asset industry.
The convulsive situation that cryptocurrencies have been experiencing for some time may have encouraged a community entity to take up the cause once and for all. The European Parliament, the Council and the Commission have approved new provisions concerning supervision of cryptographic asset providers (CASP), consumer protection and environmental protection.
Industry oversight and enforcement of the directive will fall under the existing European Securities and Markets Authority. In order to address issues such as money laundering, the said body would be in charge of a public registry that would list all non-compliant crypto-active substance providers and/or offering services without authorization.
On the other hand, the European Parliament and the Council reached another agreement last Wednesday to force crypto-asset service providers to provide information on all digital asset transactions under the Funds Transfer Regulation.
Apparently, the new directive would apply to cryptocurrencies and we will see how NTFs are eventually regulated because Inexhaustible assets offered to the public at a fixed price, such as tickets to an event or a video game feature, will initially be exempt. of these new rules, although the European Parliament did not rule out that its regulation will be introduced into MiCA in the future.
As we have already said, we will see how the NTF will fare under the new directive given that some member states such as Lithuania, Ireland and Hungary were against their inclusion in the discussions held last Wednesday. Some dissenting parties have expressed willingness to accept the NTF regulation in exchange for the addition of a review provision.
MiCA is a project that has been in the making for two years. The various proposals that emerged caused a lot of controversy, as one of them introduced a clause banning Bitcoin and other cryptocurrencies in case the mining process consumed too much energy. It was removed in later drafts after angry complaints.
We will see how the Cryptoactive Markets Directive ends up, but from what is seen it suggests that it will seek to limit the cryptoactive market, protect consumers and require transparency from services and be registered to operate legally.
