The European Union has been working on the Markets in Crypto Assets (MiCA) law for a long time. According to a recent report, the EU is preparing to finalize cryptocurrency regulation this month. The MiCA bill was approved by the EU parliament earlier this year. Accordingly, the new law is important because it creates a crypto regulation valid throughout the union.
Introduced in 2020, MiCA plans to hold comprehensive crypto regulation in the EU block. Bloomberg said in a report that European politicians will meet twice this month to address issues surrounding the bill, paving the way for the law to be passed. As it is known, after the Terra incident, calls to regulators to protect investors in the crypto space have increased. Accordingly, the EU wants to implement MiCA quickly after the Terra accident.
Stablecoin contention over cryptocurrency regulation
Calls for swift enforcement of regulation continue to rise. But insiders told Bloomberg that lawmakers still disagree on some aspects of the bill. A major point of contention has emerged among EU regulators, especially in the wake of the Terra collapse. Accordingly, regulators cannot agree on how stablecoins will be regulated. Lawmakers are discussing how to reduce the use of stablecoins, especially in non-Euro transactions. In addition, the parliament aims to impose a maximum amount on the amount of stablecoins used in a transaction.
Crypto commentator Patrick Hansen explained on Twitter the purpose of limiting stablecoin usage. Accordingly, the European Union aims to prevent the substitution of euro and other prices between the bloc countries. Additionally, lawmakers are split over whether NFTs should be included in the comprehensive bill.
Focuses on the environmental impact of crypto
The European Union recently lifted a potential ban on Proof-of-Work tokens like Bitcoin from the MiCA bill. However, the latest report showed that regulators remain concerned about the environmental impact of the cryptocurrency space. Parliament will now likely ask miners for additional clarifications on the use of crypto energy. However, more and more governments are examining the energy consumption of the cryptocurrency market. Finally, the state of New York in the USA is voting in favor of a mining ban.
Additionally, the European parliament will likely include anti-money laundering laws in the bill. The money laundering clause in the cryptocurrency regulation received approval earlier this year. Thus, crypto assets are likely to be subject to strict reporting practices.
USA is also increasing regulations
As we reported on Cryptokoin.com, after Terra’s collapse, regulatory steps were taken in the USA. Terra’s dollar-pegged stablecoin UST has been unstable in the past few weeks. The result was a sale event that caused LUNA to lose 99% of its value. Then the US Securities and Exchange Commission (SEC) opened an investigation against the Terra team.
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