At a time when there is rising demand for strict crypto regulation, European authorities agreed on a set of rules. The Economic and Monetary Affairs Committee negotiators struck a provisional political agreement with the Council on new rules on crypto-assets.
Europe’s New Crypto Rules Provide Transparency
The Markets in Crypto-Assets (MiCA) rules will introduce provisions on supervision, consumer protection and environmental safeguards for crypto-assets. Among the key provisions agreed are applicable for those issuing and trading crypto-assets. The rules cover transparency, disclosure, authorization and supervision of crypto transactions.
The new MiCA rules mandate crypto players to inform consumers about risks, costs and charges associated with crypto. Also, the new legal framework will support market integrity and financial stability by regulating public offers of crypto-assets.
However, there is no full clarity with respect to aspects like NFTs, DeFi, and stablecoins. Patrick Hansen, a crypto enthusiast, said investors would still need to look for further clarity on those aspects.
“There is not 100% clarity on all the aspects yet, so please take these points with a grain of salt.”
