The Council of the European Union and the European Parliament reached an agreement on the provisions of MiCA

The Council of the European Union and the European Parliament have tentatively agreed on the provisions of the bill on the regulation of cryptocurrencies (MiCA), said Stefan Berger, rapporteur on MiCA regulation in the European Parliament.

The bill regulates the activities of issuers of unsecured crypto assets, issuers of stablecoins, and trading and custodial platforms.

According to French Minister of Economy and Finance Bruno Le Maire, the new regulation “will put an end to the Wild West in the industry.”

According to the legislator, MiCA will oblige issuers to comply with strict operational and prudential rules with limits on the volume of transactions in the amount of €200 million per day.

The indicated volume is many times the daily trading volume for the most popular stablecoins like USDT, USDC and DAI, according to CoinGecko.

Cryptocurrency service providers (CASPs) will be required to adhere to strict requirements aimed at protecting consumers. And in case of loss of investors’ funds, they can be held liable.

For trading platforms, there will be a requirement to provide a white paper and sanctions for the use of misleading information.

As for consumers, they are provided with disclaimers mentioning the risks of losses associated with crypto assets, and for companies — the rules of marketing communications.

MiCA will cover all market abuses related to any type of transaction or service, primarily market manipulation and insider trading.

CASP will need a permit to operate in the EU. The largest service providers of crypto assets will be controlled by ESMA.

Fortunately for Bitcoin miners, the bill does not include a Proof-of-Work ban. Also, the bill did not honour the NFT. But over the next 18 months, the European Commission may supplement the bill with relevant provisions.

The preliminary agreement for formal adoption will require approval by the European Council and the European Parliament.

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