MiCA is here

Introduction

MiCA seeks to harmonize cryptocurrencies in Europe

  • A more efficient system for addressing market abuse;
  • An enhanced approach toward new technologies;
  • Improving consumer protection;
  • Defining AML/CFT requirements in line with international standards;

The proposed regulation

Who is behind the draft?

If not MiCA then what?

Why is MiCA necessary?

Although some of the provisions of MICA may seem burdensome for the crypto industry, there may be no other option for crypto to gain legitimacy in Europe.

  • The goal of MiCA is to allow crypto assets to be regulated by a single European regulator rather than individual regulators from each EU member country.[1] This means that all exchanges and wallets will fall under one unified set of rules and requirements instead of having different sets for each jurisdiction.
  • In addition to creating uniform regulation across all EU member states, it also allows companies who want their ICOs listed on European exchanges (i.e., Binance) or traded on European stock exchanges (i.e., Nasdaq) can do so through a single entity: the European Central Bank (ECB). The ECB oversees monetary policy and banknote issuance throughout 18 countries across Europe.[2] It is well-positioned as an overseer because it already regulates banks within those countries — allowing them access into cryptocurrency markets would mean introducing additional regulations onto existing financial institutions rather than creating new ones dedicated specifically towards crypto activity; this allows existing financial institutions such as Deutsche Bank AG which recently announced its plans [3]to offer digital currency trading services through its investment banking arm Deutsche Securities Ltd;[4] Barclays Plc which has been researching launching its own trading platform [5]; JP Morgan Chase & Co., Inc.;[6], Goldman Sachs Group Inc.;[7]and Citigroup Inc.[8].

Conclusion

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
CAIZCOIN

World’s First Islam Compliant Cryptocurrency. Envisioned to be the bridge between centralized and decentralized finance.