European lawmakers are anticipated to vote on the Markets in Crypto Assets (MiCA) today, potentially initiating a new era of cryptocurrency regulation throughout the bloc. In addition, officials have debated the bill’s details, publicly expressing support for a specific lic...
European lawmakers are anticipated to vote on the Markets in Crypto Assets (MiCA) today, potentially initiating a new era of cryptocurrency regulation throughout the bloc. In addition, officials have debated the bill’s details, publicly expressing support for a specific licensing regime for digital asset service providers.
EU lawmakers on MiCA bill
The provision on fund transfers has garnered significant attention as it seeks to facilitate tracking suspicious digital asset activities, such as money laundering and terrorist financing, across the European Union. Transfers exceeding €1,000 ($1,097) from unregulated or self-hosted platforms will likely be restricted.
YouHodler CEO and co-founder Ilya Volkov said that adding regulatory clarity and clear rules would reduce risks for businesses and customers, especially in areas not covered by consumer protection rules.
MiCA aims to establish a system requiring stablecoin issuers to maintain sufficient reserves to support redemptions, subtly referencing last year’s collapse of Terra’s algorithmic stablecoin, UST. Although some view the regulation as a means to limit crypto’s potential, others believe it could provide a model for competing jurisdictions, including the US.