The European Union is reportedly said to have finalised the text of its landmark Markets in Crypto Assets (MiCA) bill.
Earlier this year, the European Commission, EU lawmakers and member states reached its landmark agreement on the much-debated MiCA bill. The agreement is often viewed as the first major regulatory framework of the crypto industry.
According to a news report in CoinDesk, the EU enforcers are looking to explore the provisions that would give the law a fresh approach. While it is said to concentrate on the stablecoins largely, a few rules can also be incorporated into the non-fungible and DeFi tokens. However, there is no specific mention of the NFTs in the bill or that of DeFi tokens, and it largely focuses on the fungible tokens instead of the non-fungible ones.
The new MiCA bill text is said to take a “substance over form” approach and explores changes that indicate how the EU might treat algorithmic stablecoins.
Suppose the MiCA bill does pass the majority of the vote. In that case, the crypto asset issuers will be required to publish white papers containing technical roadmaps and register their project with the required authorities. Besides, it will also set a minimum parameter which would decide on the sustainability standards for consensus mechanisms of the cryptos.
Binance head lauds MiCA bill
Even though it is yet to be announced formally, Binance CEO Changpeng Zhao has well-received news of the MiCA bill finalisation. Tweeting about the development, CZ said that the latest draft of MiCA removes the previous restrictions on non-EUR stablecoins. He further added that liquidity offers the best protection for the user.
CZ also praised US President Joe Biden’s Executive Order to ensure responsible development of digital assets.
Conclusion
Though it has still not been formalised, it has caused enough speculation in the market about the possibility of regulations in the future. Several crypto industry players are of the view that the MiCA bill regulations can also be implemented within the mainstream cryptos as well.
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