- The Markets in crypto association (MiCA) bill was approved in October 2022 by the European Council.
- In the election, it received 28 votes in its favor and requires to pass one last vote.
MiCA is among the first attempts for absolute law of the crypto market. The law includes topics such as money laundering, stablecoins, accountability of crypto companies, NFTs, etc. but, There are also many articles that haven’t been revealed, that can influence crypto influencers.
On Tuesday, Patrick Hansen, the director of EU’s strategy and policy raised one of these articles. In line with the small print, the crypto influencers who will comment on any social media platform about crypto assets without any notice will be affected. If they are supposed to profit from the consequences of their actions, it will be referred to as market manipulation under the MiCA regulation.
The term isn’t clear yet but it is said that it may include memes like Elon Musk’s Doge-Twit image that has been propagating. Some people asked why those rules can’t be applied to other assets. Although, some people advised that there should be more clarity from crypto influencers and coin shillers.
The way through it is going to be looked after and imposed is also vague. Nonetheless, one thing is pretty much clear: the EU will be even more stricter in regard to the crypto industry and everything linked to it.
Regulators are bearish that the step is going to make the place more influencing and fascinating than ever. Today, Stefan Berger, the reporter of MiCA said that these laws are mandatory if the nation wishes to be a big player in this industry.
“If Europe wants to be a big player in the crypto game, we need this regulation to create trust, to create companies which make some innovation in this whole #crypto sphere,” says @DrStefanBerger.#MiCA
Watch— EPP Group (@EPPGroup) November 1, 2022
Actual motivation behind MiCA
MiCA will be more stricter on Defi in regard to consumer protection. Though, it will easily change into TradiFi, centralizing and controlling all areas of the industry. It has a target to regulate stablecoins and their allocation and crypto asset service providers (CASPs). This will make the way easier for completely regulated exchanges and brokers and probably restrict the scams.
In that bill, there are three sub-divisions of crypto assets. The divisions are done on the basis of the search to stabilize the value of the token with respect to other assets.
Moreover, it is acknowledged as a consumer protection card but the actual reason behind MiCA is money laundering protection. To do that, it targets to draw crypto company laws in regard to that same structure ruling banks. MiCA is improbable to be made a law till 2024.
Source: https://www.thecoinrepublic.com/2022/11/02/crypto-influencers-in-trouble-under-mica/