And now! EU to regulate cryptocurrency transactions

Deepak Gupta July 1, 2022
Updated 2022/07/01 at 10:00 AM

When talking about cryptocurrencies, or digital currencies, one of the questions that arises is the lack of regulation. In this sense, last Thursday, the European Union (EU) agreed on the details to sign an interim agreement that regulates the transaction of digital currencies.

This comes at a time when cryptocurrency prices have dropped and more rigorous scrutiny of this type of value is called for.

Cryptocurrencies: Regulation of Markets in Crypto Assets (MiCA).

Traders have concluded agreement on a comprehensive set of rules that will regulate cryptocurrency trading to apply to the 27 member states, known as Markets in Crypto Assets (MiCA).

The EU rules on cryptocurrencies "will ensure a harmonized market, provide legal certainty for crypto issuers, ensure a level playing field for service providers and ensure high standards of consumer protection," said Berger, the EU's lead lawmaker negotiating the rules.

Like the EU's data privacy policy, which has become the global norm, and its recent landmark law targeting harmful content on digital platforms, cryptocurrency regulations are expected to influence the rest of the world.

The EU rules are "really the world's first comprehensive piece of digital currency regulation," said Patrick Hansen, a cryptocurrency risk advisor at Presight Capital, a venture capital fund.

And now!  EU to regulate cryptocurrency transactions

The rules will help inexperienced cryptocurrency investors avoid falling victim to fraud and schemes that regulators warn are widespread in the industry.

Providers of bitcoin-related services are subject to the regulations, but not bitcoin itself, the world's most popular digital currency, which has lost more than 70% of its value since peaking last November.

Exempt NFT Traders...

Traders have exempted NFTs, non-fungible registrations, which have increased over the past year.

For the EU, unlike cryptocurrencies, digital goods, which can represent works of art, sports memorabilia or anything else that can be digitized, are unique and sold at a fixed price. However, there was room to later reclassify them as a crypto asset under the MiCA or as a financial instrument.

The EU rules, which still require final approval, are due to enter into force by 2024 and include measures to prevent market manipulation, money laundering, terrorist financing and other criminal activities.

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