Stefan Berger, a member of the European Parliament, said that the text of the MiCA cryptocurrency law, which is the turning point of the European Union, could be ready in six weeks.
EU’s MiCA cryptocurrency law text available soon
Stefan Berger said at a panel organized by Germany-based Bundesblock that the MiCA text will be ready very soon. On June 30, EU lawmakers and governments agreed on a master draft of legislation that would require cryptocurrency providers to register with regulators to provide services across the block. The finer points of the law, such as whether the rules should apply to NFTs that provide proof of ownership of assets such as artwork using ledgers.
The law is set to establish parameters for how each of the member states of the European Union regulates crypto. It is expected to establish a common licensing regime, facilitate companies operating in one member state to operate in others, and define rules for issues such as stablecoin issuance.
German politician Berger, who is negotiating MiCA for the European Parliament, said in an online panel hosted by the German lobby group Bundesblock, that technical studies are still ongoing on the law, which will begin to be implemented 18 months after it is published in the EU official. Member of the European Parliament, Stefan Berger, said that the text of the EU’s crypto money law will be ready very soon:
I’d say in four to six weeks. We’re all working on it, eight hours a day, the process continues… but I think we should have something ready to deliver in six weeks.
Regulation of exchanges and NFTs
Berger said that under the final agreement, any crypto exchange with more than 15 million active users will be subject to European-level regulation. He suggested that all but the biggest players would remain under the scrutiny of national regulators such as Germany’s Bafin.
But Berger also casts doubt on how exactly NFTs will be covered under the law. The industry worries that if the law requires proprietary NFT platforms such as OpenSea to obtain permission, premature regulation could suffocate an emerging and burgeoning industry.
“We have decided to exclude NFTs from the law unless they look like traditional financial assets,” Berger said. His words contradict what has been done by European Commission officials, who have suggested that the final carving is narrow. This means that in practice most NFTs will fall under the law.
Meanwhile, crypto market players are waiting to know the definitive answer. Presight Capital crypto startup advisor Patrick Hansen told the event that “the devil is in the details” for the MiCA law. If NFTs that are part of a collection or series need to be edited, “When you look at the current NFT market, that’s the vast majority, 95% or more,” Hansen said.
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