While combustion cars are to be banned, #BitcoinMining may continue to exist in the #EU – since the beginning of this month, the #MiCa set of rules has been complete, finally bringing an end to the debate about a possible #Bitcoin #ban in the EU. Even more: It contains uniform regulations for the entire #crypto market, which are tough on the one hand, but still give the industry a sigh of relief. In this article you can find out what exactly the crypto #regulation in the EU looks like now.
MiCa on the home stretch
First things first: With its comprehensive #Crypto set of rules #Markets in #Crypto #Assets (MiCa), the EU has finally made sure that the highly controversial, climate-politically motivated #ban on #ProofOfWork services will not come into force and is finally off the table is. Bitcoin fans in particular are happy about this step, as Bitcoin will continue to be allowed in Europe. This applies to both trading and owning the cryptocurrency.
The end of the wild west
According to EU decision-makers, the landmark regulations aim to put an end to the “wild west of cryptocurrencies” and confirm the EU’s role as a pioneer on digital issues.
Instead of individual currencies, the focus is on crypto service providers when it comes to acting responsibly and environmentally conscious. According to the new set of rules, crypto-asset providers will be obliged to state the environmental balance of their assets in the future.
In addition, transactions over 1,000 euros from unhosted wallets will have to be reported in the future. For the crypto community, this means the end of anonymous transactions, which can no longer be easily made in the private sector of hardware or hot wallets in the future. The EU justifies its measures with anti-money laundering prevention, which, in view of the long time without regulation, can be questioned and given as a reason without naming specific cases.
Stablecoins are also subject to new regulations with immediate effect – their publishers are now obliged to have the necessary reserves to ensure the stability of their tokens. The crash of Terra and Tether certainly served as a negative example. This should give investors better protection against losing their entire fortune when investing in stablecoins.
The response to the MiCa regulations is mixed, since on the one hand long-needed guidelines are now being implemented, on the other hand the freedom of the individual is restricted and curtailed. It should be clear that the set of rules will be hotly debated in specialist circles and that individual players will look for loopholes in order to circumvent one or the other regulation.
To what extent MiCa helps or harms the crypto industry is certainly a question of perspective, but many players in the market are happy that the EU is much more lenient than China, for example, and does not completely ban Bitcoin, like all other crypto currencies. So you can continue to mine, trade and invest in the future.