Markets in Crypto Assets Regulation (MiCA) discussions

[Poker Player]

MiCA got approved by the EU parliament.
https://www.coindesk.com/policy/2023/04/21/with-mica-past-the-finish-line-uks-crypto-industry-calls-for-rules-of-its-own/

I don't get why some people are praising it for being the first crypto rule book, like it's a good thing that they're putting a leash on its users. At this point it's going to be harder to legally use cryptocurrencies than fiat money.

I'm not sure how this is going to end up regarding their plans to make both parties go through KYC when transaction is over 1k EUR. The plan was for a registered institution, like an exchange, to have to know the owner of the address it's sending coins to, which was completely ridiculous.

Well, not surprisingly, it is in line with what is expected for the European Union but I don't see it as ridiculous, although I'm not saying I agree with it. They simply want exchanges to operate KYC/AML like banks. The only positive is the €1K threshold below which those involved in a transaction do not have to be identified.

Nobody is going to use exchanges in the EU if that becomes a rule. Fortunately we have until 2025 for them to make up their minds. Maybe we'll have one last bull market before they kill trading in Europe.

Well, in principle this could move some of the use of exchanges out of Europe, but do you see anywhere in the world a big libertarian movement that will allow the use of Bitcoin as Satoshi dreamed? Lol, no, certainly not. What I think is that what will happen in the rest of the world is that little by little they will implement restrictive legislation like this.

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[SFR10]

I don't get why some people are praising it for being the first crypto rule book, like it's a good thing that they're putting a leash on its users.

If I were to guess, I'd say it probably has something to do with the fact that there's no longer a lack of clarity.

I'm not sure how this is going to end up regarding their plans to make both parties go through KYC when transaction is over 1k EUR. The plan was for a registered institution, like an exchange, to have to know the owner of the address it's sending coins to, which was completely ridiculous.

They did clarify it by saying that transactions involving two normal individuals are exempted from the travel rule, but I'm still confused if funds "sent from the private wallet" of an exchange are also exempted or not

• The Parliament clarified that this will only apply to transfers facilitated by companies or funds sent to public wallets controlled by centralized entities like an exchange and that transfers between two individuals will be exempt from these rules.

Fortunately we have until 2025 for them to make up their minds.

I'm not sure if I'm missing something, but everything that I've read so far points to it becoming law by next year.

[darkangel11]

Well, in principle this could move some of the use of exchanges out of Europe, but do you see anywhere in the world a big libertarian movement that will allow the use of Bitcoin as Satoshi dreamed? Lol, no, certainly not. What I think is that what will happen in the rest of the world is that little by little they will implement restrictive legislation like this.

There was a n interview with someone from Bitstamp about the regulation and they said it's not bad and they see it as something positive. They will not migrate of of the EU because of it.
I think it's not making it harder for exchanges, rather for clients who were used to operating with less KYC. Personally, I think the regulation is aimed at making cryptocurrencies look less appealing when CBDC gets introduced. CBDC will be made so that it offers less limits and easier, faster access, so that on paper ot can compete with bitcoin, so it's important to impose limits on bitcoin first. It's all one big operation. The government never does anything to make your life easier.

[Poker Player]

There was a n interview with someone from Bitstamp about the regulation and they said it's not bad and they see it as something positive. They will not migrate of of the EU because of it.
I think it's not making it harder for exchanges, rather for clients who were used to operating with less KYC.

Exactly, I guess they don't care because 99% of the customers they have will complete the KYC without complaint if they haven't already done so, and they will be able to continue making money, which is what matters to them.

Personally, I think the regulation is aimed at making cryptocurrencies look less appealing when CBDC gets introduced. CBDC will be made so that it offers less limits and easier, faster access, so that on paper ot can compete with bitcoin, so it's important to impose limits on bitcoin first. It's all one big operation.

Probably.

The government never does anything to make your life easier.

Lol, how strange, one of my own on the forum. With the number of forum members who defend big government socialism, despite the contradiction it implies with the principles of bitcoin, I'm glad to find someone who thinks like me.

[zasad@]

https://www.coindesk.com/policy/2023/05/31/eu-formally-signs-new-crypto-licensing-money-laundering-rules-into-law/
EU Formally Signs New Crypto Licensing, Money Laundering Rules Into Law

"The news was announced on Twitter by the Swedish government, which is chairing legislative talks as it holds the EU presidency. A parliament spokesperson confirmed to CoinDesk that the laws in question include MiCA and the transfer of funds rules as well as two unrelated regulations on trade with Ukraine.
MiCA will enter into force in a few weeks after being published in the EU’s official journal, which is likely in June. Its provisions – offering crypto exchanges and wallet providers a license to operate across the 27-nation bloc, and requiring stablecoin issuers to hold appropriate reserves – will take effect between 12 and 18 months later."

[Husires]

We will hear of many platforms that will begin to exit the market due to insufficient reserves and may enter more serious platforms instead of those that use customer funds for personal purposes.
I recommend anyone to withdraw their coins from centralized exchanges temporarily.

The bad side (perhaps the good for some) is that the next stages may include staking and central financing, which means that most proof-of-stake coins may not be able to continue because they will be taxed or some restrictions.

https://www.coindesk.com/policy/2023/05/31/eu-formally-signs-new-crypto-licensing-money-laundering-rules-into-law/
EU Formally Signs New Crypto Licensing, Money Laundering Rules Into Law

Do you know what the final version of the law is? Or the amendments that have been made to the draft law?

[zasad@]

We will hear of many platforms that will begin to exit the market due to insufficient reserves and may enter more serious platforms instead of those that use customer funds for personal purposes.
I recommend anyone to withdraw their coins from centralized exchanges temporarily.

The bad side (perhaps the good for some) is that the next stages may include staking and central financing, which means that most proof-of-stake coins may not be able to continue because they will be taxed or some restrictions.

https://www.coindesk.com/policy/2023/05/31/eu-formally-signs-new-crypto-licensing-money-laundering-rules-into-law/
EU Formally Signs New Crypto Licensing, Money Laundering Rules Into Law

Do you know what the final version of the law is? Or the amendments that have been made to the draft law?

I have nothing to do with Europe, so I'm not interested in the nuances, but European legislators plan to implement this law throughout Europe.They divided the tokens into ART, EMT, Utility Tokens and others. More details can be found in the overview of the law.
Each token, depending on the type, will be regulated differently and they will have different regulatory authorities. KYC and AML are adding to this, and now crypto projects are obliged to obey the requirements of regulators, and not do what they want as before.

[zasad@]

https://www.msn.com/en-us/money/markets/eu-regulator-warns-of-opaque-crypto-firms-as-it-seeks-to-close-mica-loopholes/ar-AA1ilXr2
EU Regulator Warns of ‘Opaque’ Crypto Firms as It Seeks to Close MiCA Loopholes

"European Union regulators on Tuesday warned that “complex and opaque” global crypto companies could try to exploit differences among member states, saying that some may try to operate from overseas via EU-based shells even after its landmark Markets in Crypto Assets regulation (MiCA) takes effect.

The European Securities and Markets Authority (ESMA) on Tuesday told major global crypto firms to start preparing for MiCA now, even as national regulators race to design the procedures that will let exchanges and wallet providers gain a coveted crypto license.

MiCA license rules take effect in December 2024, but companies can continue operating without a full license until July 2026 if they are registered under an existing, lighter-touch national money laundering regimes – as has been done by the likes of Binance in France and Coinbase in the Netherlands."

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I have already written that MiCA does not heavily regulate cryptocurrencies and NFT tokens, but it regulates stablecoins very well and there are mechanisms for banning the use of stablecoins if it threatens the economies of European countries.