Tomorrow the European Parliament will vote on the Marketing in Crypto-Assets Regulation. This is a major tipping point for crypto as we know it. If this law is passed, it will have major impacts across crypto space. But, what is MiCA?
Firstly, MiCA or Marketing in Crypto-Assets Regulation is a law that if passed will ensure that,
- Electronic Money Tokens
- Asset-referenced Tokens (For Example DIA)
- Utility Tokens (Tokens that provide a service)
Are all regulated to some extent.
This comes in the next phase of the race to become Europe's go to crypto country. A role that most in the European Union would be happy to have.
Another main point in the MiCA Regulation is the fact that you have to have an office in the EU. This is a major blow to small crypto start-ups who may not be based in the EU but still want to expand their customer base.
Thirdly, crypto-asset issuers will need to act "honestly" and "professionally" to maintain security over the assets they manage. This, in my opinion, is the most sensible point in the MiCA. It is however, extremely vague. "honestly" and "professionally" could easily be interpreted as something there not meant to be.
Therefore, the MiCA will make it more challenging for new crypto developments to get started but at the same time discourage most of the criminal activity from occurring in the future. There are improvements to be made to MiCA, but its a solid start from the EU.
If MiCA is voted through tomorrow then it will take 12 or more months to come into effect across the EU.
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This is was not intended to be investment advice! The article you have just read was written by an incompetent fool. Please always double check the facts and do your own research.
