The proposed EU Regulation on Cryptocurrency Markets, or MiCA (hereinafter referred to as the “Regulation”), was put to a vote in the Economic and Monetary Committee of the European Parliament on March 14, 2022, and the change was finally banned or restricted. rejected. Proof-of-work based cryptocurrencies, which will effectively ban bitcoin (BTC).

However, the question of how to evaluate cryptocurrencies in terms of environmental regulation remains with the MEP, responsible for the text indicating that cryptocurrencies, like all other financial products, will be included in the EU classification (the process of classifying economic activities). that have a positive impact on the environment), without specifying the treatment of these assets in light of this classification.

The proposed regulation is part of a digital finance package that also includes a market infrastructure pilot scheme based on distributed ledger technology (DLT) of interest to the security token sector, which has been approved by the Storting’s Finance and Monetary Affairs Committee. January of this year and will come into force by the end of 2022.

The European Commission is exploring several options for regulating the cryptocurrency sector. Finally, he chose the possibility of full EU harmonization of the rules that apply to issuers and service providers in cryptocurrencies with the EU passport, rather than the EU passport opt-out mode option with current national rules. For stacked coins, the Commission advocated an individual legislative system along with regulation under the Electronic Money Directive.

On the subject: Europe is waiting for the implementation of the regulatory framework for cryptocurrencies

Let’s look at the main provisions of the MiCA Regulation, which, after a tripartite dialogue between the Council, Parliament and the Commission after a vote on March 14, will enter into force before the end of the year and which aims to achieve four goals: legal certainty, support for innovation, consumer and investor protection, market security and financial stability.

In addition to defining the competent authorities and their own administrative penal authorities, as well as the rules for combating market abuse, the main provisions of the Regulation are related to the purpose and scope of the Regulation (1), as well as the rules applicable to the granting of an advantage. Crypto assets (II), tokens referred to as assets (III), crypto assets for electronic money (IV) and rules applicable to crypto asset service providers (V).

The purpose of the rules is to establish rules regarding the following:

Transparency and disclosure requirements for issuing and accepting cryptocurrencies for trading.
Delegation and control of crypto activation service providers, asset-based token issuers and e-money token issuers.
Operation, regulation and management of asset-based token issuers, e-money token issuers and crypto activation service providers.
Consumer protection rules for issuing, trading, exchanging and managing cryptocurrencies.
Market abuse prevention measures to ensure the security of cryptocurrency markets.
The regulation applies to persons in the EU who issue cryptocurrencies or provide services related to cryptocurrencies. The rules do not apply to:

crypto assets that are financial instruments (securities issued by companies with shares, debt securities, shares, shares in collective investment mortgages and financial futures) or electronic money, if the latter do not qualify as electronic money in accordance with the law.
Certain entities or persons, such as the European Central Bank and the national central banks of the Member States, insurance institutions, liquidator or officer involved in insolvency proceedings, persons providing crypto asset services exclusively for their parent projects, their subsidiaries or others subsidiaries. the parent project, the European investment bank Investment Bank and international public organizations. Only authorized credit institutions and investment firms will be subject to certain provisions of the Regulation, or the provisions governing them will be adapted.
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Secondly. Rules applicable to the release of encryption tools
This category, which the regulation refers to as “cryptocurrencies other than tokens denoting electronic money or tokens”, corresponds to cryptocurrencies intended to provide digital access to a good or service available in the DLT system and accepted only by the issuer of that token (“utility tokens”). These “instrument tokens” have a non-financial purpose associated with the operation of a digital platform and digital devices.

Source: CoinTelegraph