The European Union is apparently close to striking a regulatory framework agreement in the Markets in Crypto-Assets (MiCA) initiative. This framework refers to a legislative package. It will be in charge of comprehensively regulating the cryptocurrency market and all connected activities in Europe. This effort aims to bring together 27 member states and establish the same standards for digital assets that would apply to all of them.
Before reaching an agreement, the negotiators must address a few more key points. There’s a lot going on right now, including considerations about transaction size with dollar-backed cryptos.
Key Disagreements
On June 14 and June 30, negotiators will meet to discuss a few challenges before reaching an agreement. According to reports, the French presidency of the EU Council and the European Parliament have taken a constructive stance on matters that are slowing down the draft’s progress.
The supervision of crypto asset service providers (CASPs), NFTs are among the concerns that have sparked debate. There is also debate on how to set a limit or ceiling on the use of stablecoins in payments. This move is being discussed as a result of the massive drop in terrausd (UST), an algorithmic stablecoin that has caused turmoil in the sector. The European Union also wants to keep the climate-related discussion on the table.
The climate-related disclosures will make it easier to keep track of Bitcoin’s influence on the environment. There is a lot of discussion going on right now about specific standards for cryptocurrency service providers.
