Gone are the days without crypto legislation and lightly regulated digital assets. Now, while the upcoming regulations can reduce rug pulls and shitcoins, they also mean taxing crypto taking out the X factor. For the most part, it was less regulations for digital assets that distinguished them. Essentially, every crypto legislation anywhere in the world means asking for user info (KYC) and taxing their transaction. Funny enough, large crypto exchange platforms are doing exactly what the governments ask of them. After all, platforms such as Binance, Coinbase, KuCoin and Kraken simply can’t lose their share of the market by non-conformity.
This is something we could see coming years ago when crypto remained decentralized but all of the ecosystem or the apparatus built around it was heavily centralized. Sadly, this is the point where decentralized money flows into centralized channels of crypto legislation. Back in April, the EU lawmakers voted in favor of a series of harsh crypto regulations. And now, the officials have approved the regulatory framework.
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Crypto Legislation
As of October, the EU parliament is persistently moving toward adopting the infamous bill. Ideally, the new regulations on digital assets will safeguard financial assets and put cryptocurrencies on a leash.
It comes as a package called Markets in Crypto Assets Regulation (MiCA). And MiCA, has just got the green light by the council according to ECON Committee Press. Initially, the provisional agreements for MiCA formed back in June. The negotiators emphasized on transparency authorization and crypto transaction disclosures as the best measures to fight financial crimes.
“The new legal framework will support market integrity and financial stability by regulating public offers of crypto-assets. Finally, the agreed text includes measures against market manipulation and preventing money laundering, terrorist financing and other criminal activities.”
Earlier this year, President of the European Central Bank Christine Lagarde said it was critically important to pass MiCA. This was in a meeting with the Economic and Financial Affairs Council (ECOFIN) in Paris.
In part, the EU may have serious concerns about Russia trying to curb sanctions using cryptocurrencies. At this point, the crypto legislation is inching closer to pass.
Stefan Berger, a lead member of European Parliament said,
“MiCA is a European success. We are the first continent to have a crypto-asset regulation. In the Wild West of the crypto-world, MiCA will be a global standard setter. MiCA will ensure a harmonised market, provide legal certainty for crypto-asset issuers, guarantee a level playing field for service providers and ensure high standards for costumer protection.
Tokenization will be as groundbreaking for the financial world as the introduction of the joint market was in the 17th century. With the MiCA regulation, reliable authorisation and supervisory structures for new tokens are now being created for the first time.”
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