The world of crypto along with all its users is about to experience a massive shock. The new MiCa rule will cover issuers of stablecoins, digital assets, wallets and trading platforms which are not backed.
Recently, the European Union (EU) officials agreed upon the implementation of a singular regulatory framework. This landmark law is known as the MiCa (Markets in Crypto-assets) framework.
According to a member of the European Parliament, Stefan Berger, the new MiCa bill has made Europe the first continent with an official digital asset regulatory framework. Berger called the event a “balanced” deal in his Tweet. Incidentally, Berger is also a rapporteur for MiCa.
An End to Crypto Freedom?
The Minister of Economy in France, Bruno Le Maire, claims that this landmark law will end the “Wild West” crypto world.
MiCa comes at a time when investors are still shook by the tragedy of the stablecoin Terra. The new regulation seeks to secure investors. They will now ask stablecoin issuers to create a sufficient liquid reserve. These reserves, according to EU member Ernest Urtasun, must be completely protected if insolvency strikes. The reserves must also be insulated and segregated ,both operationally and legally.
There is also a new cap of 200 million euro per day on transactions of stablecoins introduced in the MiCa bill.
More Protection for Consumers
Now trading platforms need to offer a white paper for any currency without a clear issuer. Take Bitcoin (BTC) for instance. On top of that, the digital asset platform issuing tokens will be liable for any information of misleading nature.