The Council Presidency and European Parliament have come to an agreement on the Markets in Crypto Assets (MiCA) proposal.
According to Finextra, the proposal rules that crypto-asset service providers will require authorisation to operate in the EU, not including NFTs or media-related digital assets.
Under the new agreement, the regulatory framework will protect investors and consumers, while making sure that financial stability in ensured as well as enabling innovation and growth.
The regulations will also help shelter consumers from fraud and scams, as crypto-asset service providers will be liable if they lose assets and fail to protect investors’ wallets. In addition, the EBA will form a public register of non-compliant crypto-asset providers.
Finextra highlighted that the regulation will also implement restrictions on stablecoins, with stablecoin issuers set to be supervised by the EBA and their ‘holders will be offered a claim at any time and free of charge’.
Bruno Le Maire – minister for the Economy, Finance and Industrial and Digital Sovereignty for the French government – said, “Recent developments on this quickly evolving sector have confirmed the urgent need for an EU-wide regulation. MiCA will better protect Europeans who have invested in these assets, and prevent the misuse of crypto-assets, while being innovation-friendly to maintain the EU’s attractiveness. This landmark regulation will put an end to the crypto wild west and confirms the EU’s role as a standard-setter for digital topics.”
South Korea-based social trading platform League of Traders recently closed its pre-Series A funding round on $2.4m.
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