The MiCA Law Draft
The recent MiCA (Europe’s Markets in Crypto-Assets Regulation) Law draft has brought about many changes. It has announced that it will designate the European Central Bank (ECB), Bank of Spain, and the National Stock Market Commission (CNMV) to oversee crypto-related activities in the country.
The draft also stipulates that crypto platforms or virtual currency issuers within the EU must be based in a European country and have domestic licenses. With this measure, the EU hopes to provide security to its clients by bringing service providers under its jurisdiction.
The Draft Proposals
Furthermore, Cinco Dias believes that this revised draft MiCA has granted these three bodies a legal authority to oversee cryptocurrencies. For the time being, the norm excludes NFTs, adding a bit of conspiracy to the draft.
The revised draft lowers the bar for current financial institutions to provide cryptocurrency-based services. Hence, on the other hand, exchanges should start from the beginning. This proposal requires them to reapply to comply with the new standards. This falls under the supervision of the three designated authorities.
Experts predict that by the year’s end, the legislation will be at a higher level. The ruling is expected to be prepared at the end of this year or early 2022. However, the draft still has some pending points.
The European Central Bank (ECB) has yet to issue an official definition of the term “crypto-asset,” which will prevent conflicting authorized interpretations eventually.
Also, since this legislation will override existing regional rules currently in effect in several European foreign areas, the EU needs to specify what procedures it is planning for such instances.
Spain vs Cryptocurrency
Spain has taken a tough line on cryptocurrencies, focusing on tax evaders who use digital assets to hide their assets. Last month, the Finance Commission of the Spanish Congress approved a draft regulation that would require custody suppliers to provide information on their clients and their holdings.