MiCa - the EU crypto regulation package

Hi,

last week, the biggest regulatory package in the EU history in terms of crypto has been passed. It is called MiCA, short for Markets in Crypto Assets Regulation.

It is a big regulatory package, even if it does not cover DeFi, NFTs, Stacking and Lending, which could affect the whole system in here.

Furthermore, it covers most anything else, especially stablecoins, which are seen as E-Money, even if they have their own mechanism.

Each Cryptoproject needs to have a whitepaper to operate and each needs to have a licence for operation, which is valid in all 27 countries of the European Union.

Every transaction worth over €1000 needs to be verified that the funds are legit.

It will probably go live in the next 18 months. Positive, I see that there is a consensus and a common law for all member states, even if I'm not the biggest fan of regulations.

I like that NFTs and stacking have been left out, as it will take a lot longer till there is a framework for them.

Businesses have now a legit way to accept cryptos as payments, which in theory needs to bring more adoption, at least for the pegged coin projects.

As negative, I see it as a form of CBDC not done by the state. Also, anonymity will be gone sooner than expected, as most transactions can be traced to different wallets.

On one hand, I'm happy about it, as there will be more adoption and much more safety, but the price is very high, maybe not worth it.

Will more countries adopt it? Most probably, yes. It is done in a very professional matter, covering a lot of aspects. Will the USA, China, or Russia adopt it? Probably not, but they will definitely pick up parts of it and adapt it.

How do you see it? Till what point shall regulations be done?

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