Crypto News: EU Agrees On Landmark Crypto Regulation Law, MiCA

European Union (EU) Policymakers have reached an agreement on major legislation to regulate crypto assets and service providers throughout the bloc’s 27 member countries.

iexclusivenews reports that the authorities representing the world’s third-largest economy have been wrangling over the Markets in Crypto Assets (MiCA) framework for for two years.

This online news outlet understands that as of Thursday. The legislation package required cryptocurrency issuers to publish a type of technical manifesto known as a “white paper.”

keeping proper stablecoin reserves in the form of bank deposits and registering with the government (cryptocurrencies pegged to the value of an asset such as sovereign currencies like the euro).

The agreement was announced via a tweet from Stefan Berger. The lawmaker in charge of guiding MiCA through the convoluted legislative procedure of the EU.

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What People are Saying

Mairead McGuiness of the European Commission praised the news as she exited the roughly seven-hour-long meetings.

“I think everybody’s now aware that you can’t have an unregulated sector,” McGuinness told CoinDesk, referring to turbulence seen in recent weeks in crypto markets.

“We’re glad that we’re leading on this,” she said, adding that “we do think there needs to be international cooperation because it’s important that we don’t regulate on our own.”

McGuinness has already urged collaboration among American governments on crypto legislation. And recent indications point to the Biden administration’s consideration of enacting its own stablecoin regulations.

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Following Christine Lagarde of the European Central Bank’s statement. That additional rules would be needed to address emerging sectors like crypto financing, McGuinness added that this is not the end of the story..

“No legislation is ever set in stone, and no legislation in the area of crypto could be,” 

McGuinness said. “Those who are in this space are thinking of being innovative will now do it in a way that sits within our regulation rather than in the Wild West.”

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Non-fungible tokens (NFT) would be completely exempt from the reach of the law. Unless they can be divided up or fractionalized. Which means that many persons can possess sections of an NFT.

According to one official familiar with the negotiations, who spoke on the condition of anonymity.

According to a tweet from lawmaker Ernest Urtasun. The agreement would impose a daily transaction limit of 200 million euros. On huge stablecoins that become popular payment options.

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The European Commission first proposed MiCA in September 2020. In an effort to combat a flurry of initial coin offers (ICO)—cryptocurrency fundraising projects—that frequently turned out to be fraudulent.

The measure required the support of EU governments and legislators to pass, which it has now done.

What You Need To Know 

MiCA has received widespread industry support since it can boost legitimacy. Encourage adoption by traditional banks, and give cryptocurrency startups a single license to operate throughout the bloc.

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iexclusivenews reports that many people, however, grew more concerned about further legislative attempts to broaden the law’s application.

To cover decentralized finance (DeFi) and NFTs as well as reduce the environmental impact of the proof-of-work consensus method that powers bitcoin.

The question of whether NFT service providers, which include markets like OpenSea. Should be required to obtain regulatory authorisation to operate within the bloc. Was the main topic of discussion in the most recent round of negotiations.

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Additionally, the regulation sets strict guidelines for stablecoin issuers. The stablecoin regulations were first put forth in response to libra.

Finance ministers were concerned that the cryptocurrency proposed by the former Facebook would usurp governments’ responsibility in managing money.

The concept of rigorous controls for stablecoin issuers has gained support in the wake of the abrupt collapse of terraUSD last month. Even if libra (later renamed diem) is no longer in existence.

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The legislative agreement comes as American legislators debate their own regulations, notably for the stablecoin market.

It also comes soon after the EU decided to implement contentious anti-money laundering regulations on cryptocurrency service providers on Wednesday.

Meanwhile, iexclusivenews Nigeria reports that Crypto firms will still have a transition period during which they can apply the new regulations.

After today’s political agreement has been formally adopted and the legislation has been gazetted in the EU Official Journal.