Mete Feridun, member of the EMU Financial Regulatory Agency, said that the recent approval by the European Parliament of the Market in Cryptoassets (MiCA) regulation marks an important milestone for the cryptocurrency industry.
The MiCA regulations will establish the first harmonized and comprehensive regulatory framework for cryptocurrencies and related services and activities in Europe and elsewhere, with a focus on clearer regulations and standards. It is also the first legislation of its kind in the world and sets a precedent for other jurisdictions around the world.
MiCA applies to issuers and service providers and is designed to protect consumers and investors while ensuring financial stability and supporting innovation. Key regulations for companies that issue and trade cryptocurrencies include transparency, disclosure, authorization and oversight of transactions.
Prior to MiCA, cryptocurrency firms had to comply with 27 different regulatory frameworks across European Union (EU) member states. Therefore, from a compliance point of view, this regulation is crucial for the EU cryptocurrency industry.
From an investor perspective, MiCA promises to bring much-needed clarity and confidence to the cryptocurrency industry. The regulation requires cryptocurrency issuers to provide complete and transparent information about the cryptocurrencies they issue and to comply with disclosure and transparency rules.
This means that the regulation can encourage more institutions to adopt and participate in the activities of the EU cryptocurrency market. MiCA will provide market participants with a clear set of rules and requirements to follow, ultimately increasing market transparency, reducing market abuse and protecting investors.
The new regulations will also establish cryptocurrencies as an asset class, providing much-needed certainty, confidence and credibility to these assets in the market.
Mete Feridun, a member of the financial regulator at EMU, believes that MiCA will help foster innovation in the cryptocurrency industry and that regulation will serve as a model for other jurisdictions around the world.
The approval of the MiCA regulations is an important step towards establishing a harmonized and comprehensive regulatory framework for the cryptocurrency industry in Europe and elsewhere.