The proposed European Union Market for Crypto Assets Regulation, or MiCA, (hereinafter referred to as the “Regulation”) was put to the vote in the European Parliament’s Committee on Economic and Monetary Affairs on 14 March 2022, and finally the proposed amendment was ban or restrict cryptocurrencies on the basis of evidence of work that would effectively lead to a Bitcoin (BTC) ban.

However, the question remains as to how to assess cryptocurrencies with regard to environmental regulation, since a Member of the European Parliament is responsible for the text indicating that cryptocurrencies, like all other financial products, will be included in the territory of the Union. Classification (the process of classifying economic activities that have a beneficial effect on the environment), without specifying the treatment of these assets, taking into account this classification.

The proposed regulation is part of a digital financing package that also includes a proposal for a pilot scheme for a market infrastructure based on Distributed Ledger Technology (DLT) of interest in the security token sector, which was approved by the Storting’s Economic and Monetary Committee. Cases in January this year. years and will enter into force by the end of 2022.

The European Commission is investigating several options for regulating the cryptocurrency sector. Finally, he chose the option of completely harmonizing EU rules applicable to issuers and service providers of cryptocurrencies with an EU passport, instead of the option of refusing to obtain an EU passport using national regulations. For stack coins, the Commission advocates a single regulatory system, together with regulation under the Electronic Money Directive.

Related: Europe is waiting for the implementation of the regulatory framework for cryptocurrencies

Let us summarize the main provisions of the MiCA Regulation, which, following an empirical study by the Council, Parliament and the Commission following the vote on 14 March, will enter into force before the end of the year and have four objectives. Legal certainty, innovation support, consumer and investor protection, market integrity and financial stability.

In addition to defining competent authorities and their powers of administrative sanctions, as well as rules to counter market abuse, the main provisions of the Regulation are related to the purpose and scope of Regulation (1), the rules applicable to the issuance of cryptocurrencies. (II), tokens associated with assets (III), and cryptocurrencies for electronic money (IV) and rules applicable to providers of cryptocurrencies (V).

The purpose of the regulations is to lay down rules on the following:

Requirements for transparency and disclosure in order to issue and accept cryptocurrencies for trading.
Delegation and supervision of providers of crypto activation services, asset-based token issuers and e-money token issuers.
Operation, regulation and management of asset-based token issuers, e-money token issuers and crypto-active service providers.
Rules for the protection of consumer rights in the issuance, trading, exchange and storage of cryptocurrencies.
Preventive measures for market abuse to ensure the security of the markets for cryptocurrencies.
The regulation applies to persons in the EU who issue cryptocurrencies or provide services related to cryptocurrencies. The regulations do not apply to:

Crypto-assets that are financial instruments (debt securities issued by companies that own shares, debt securities, shares or units in collective investment institutions and financial futures contracts) or electronic money, unless the latter qualifies as electronic money pieces in accordance with the regulations.
Certain legal or natural persons, such as the European Central Bank and the national central banks of the Member States, insurance companies, a liquidator or official engaged in insolvency proceedings, and persons providing crypto-activity services exclusively to the parent company, affiliates or other subsidiaries of the parent company, Investment Bank European, European Investment Bank and international public organizations. Only authorized credit institutions and investment firms will be subject to certain provisions in the regulations or will have amended provisions that regulate their activities.
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Secondly. Rules that apply to the encoder version
This category, which the regulation refers to as “cryptocurrencies other than tokens related to electronic assets or tokens”, corresponds to cryptocurrencies that are intended to provide digital access to a product or service that is available in the DLT system and that is only accepted by the issuer of it. tokenet (“Utility Tokens”).

Source: CoinTelegraph