The European Union (EU) has agreed on wide-ranging regulations to tame the Wild West of the crypto market. The regulations cover investor protection, environmental considerations, and stablecoins, among other aspects of the market.

The framework is titled Regulation on Markets in Crypto-Assets (MiCA) and has made headlines before for various reasons. The regulation has been expedited as a result of the recent crypto market crash, which has severely affected investors and forced companies into liquidation, including crypto hedge fund Three Arrows Capital.

Bruno Le Maire, the French Finance minister, said that “recent developments in this quickly evolving sector have confirmed the urgent need for an EU-wide regulation.”

The regulation will result in companies being more accountable for investor losses. Crypto companies will have higher investor protection standards to adhere to and may be held liable in case of losses of investors’ funds.

After the TerraUSD incident, lawmakers have become far more wary of stablecoins. MiCA mandates that stablecoin issuers have a presence in the EU and that they possess sufficiently liquid reserves.

The industry itself will have to disclose information on the environmental impact they are making. The ECB has been particularly focused on the energy impact of the crypto market.

This will not be the end of the examination of the crypto market by European authorities. The proposals will be re-examined in the next 18 months.

Meanwhile, the European Zone is facing high inflation again, with the rate touching a record 8.6% in June. Consequently, the European Central Bank aims to increase the rate for the first time in 11 years. ECB President Christine Lagarde has said that the bank is expecting positive growth, but fears of recession abound.

The ECB will meet in late Jul. to discuss the increase in interest rates. It will meet again in Sept. for another increase. The chairman of the Bank of Estonia, Madis Muller, said the ECB should consider a quarter-point interest rate hike, with a further hike of 50 basis points in Sept.

Citizens are facing a rising cost of living, like many other parts of the world. The Federal Reserve has also recently bumped up the interest rate by the largest margin in 22 years. Criticism on this move was swift, with some arguing that it would have tremendous negative consequences.

The post EU Finalizes Sweeping Regulations for Cryptocurrency Sector appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

205 +