Mete Feridun, a member of the European EMU Financial Supervision Center, issued a document saying that the European Parliament recently approved the market supervision of encrypted assets (MiCA), marking an important milestone in the supervision of the encrypted assets industry in Europe and other regions. MiCA will establish the first coordinated and comprehensive regulatory framework for encrypted assets and related services and activities in Europe, which is characterized by the need for clearer regulations and standards. This regulation also stands out as the first such legislation in the world and sets a precedent for other legislation around the world.
MiCA is suitable for issuers and service providers, and aims to protect consumers and investors, while ensuring financial stability and supporting innovation. The main terms of companies that issue and trade encrypted assets include transparency, disclosure, authorization and transaction supervision. Before MiCA, cryptocurrency companies had to comply with 27 different regulatory frameworks of European Union (EU) member states. Therefore, from the perspective of regulatory compliance, this regulation is indeed an indispensable step for the EU encryption industry.
On the other hand, from the perspective of investors, MiCA is expected to bring much-needed clarity and confidence to the crypto asset industry. The law requires issuers of encrypted assets to provide complete and transparent information about the encrypted assets they issue, and to abide by the rules of disclosure and transparency. This means that this regulation can encourage more institutions to adopt and conduct activities in the EU cryptocurrency market. MiCA will provide market participants with a clear set of rules and requirements they need to follow, which will ultimately improve market transparency, reduce market abuse and protect investors. The new system will also establish cryptocurrency as an asset class, providing these assets with much-needed certainty, confidence and credibility in the market.
MiCA is suitable for issuers and service providers, and aims to protect consumers and investors, while ensuring financial stability and supporting innovation. The main terms of companies that issue and trade encrypted assets include transparency, disclosure, authorization and transaction supervision. Before MiCA, cryptocurrency companies had to comply with 27 different regulatory frameworks of European Union (EU) member states. Therefore, from the perspective of regulatory compliance, this regulation is indeed an indispensable step for the EU encryption industry.
On the other hand, from the perspective of investors, MiCA is expected to bring much-needed clarity and confidence to the crypto asset industry. The law requires issuers of encrypted assets to provide complete and transparent information about the encrypted assets they issue, and to abide by the rules of disclosure and transparency. This means that this regulation can encourage more institutions to adopt and conduct activities in the EU cryptocurrency market. MiCA will provide market participants with a clear set of rules and requirements they need to follow, which will ultimately improve market transparency, reduce market abuse and protect investors. The new system will also establish cryptocurrency as an asset class, providing these assets with much-needed certainty, confidence and credibility in the market.