Members of the European Parliament announced in a recent statement that “a vote will take place to adopt the regulation on the MiCA bill”. In this context, it is said that the new rules will make the cryptocurrency market more mature.
EU introduces ‘harmonious rules’ for cryptocurrency market
After months of debate and deliberation culminating in the June 30 preliminary agreement, the European Parliament is now preparing to “vote to adopt the regulation on the MiCA bill”. Voting is scheduled for the plenary session of the legislature. European leaders claim that the adoption of MiCA will lead to the creation of “harmonized rules for cryptocurrencies at EU level”.
According to the November 29 meeting of parliament, the harmonized rules will provide “legal certainty for cryptocurrencies not covered by current EU legislation.” Members said at the meeting that the rules would not only increase the protection of consumers and investors. They also argued that it would “encourage the innovation and use of cryptocurrencies.”
Through MICA, European authorities also hope to “regulate the trading of cryptocurrencies and the management of reserve assets.” Throughout the process, leaders like Christine Largade, head of the European Central Bank, had pushed for stricter regulations. However, some critics of the proposed legislation argue that the proposed regulations in their current form will hinder innovation.
“We need laws to attract investors to the market”
Paulius Vaitkevicius, founder of law firm VILP Solutions, commented on the EU’s effort to regulate cryptocurrencies. The judge said the “Wild West environment” was not helpful to all parties. He also said that without guidelines or regulatory frameworks, investors would not be safe. “In the event that industry giants collapse, we may end up in a situation where only a handful of investors remain,” he said.
Vaitkevicius says the cryptocurrency market therefore needs more legal clarity. According to the lawyer, laws are needed that “bring more mature players to the sector by both the project and the investor”.
Vaitkevicius also made the following statements in which he stated that he was in favor of regulating the sector:
In my personal experience, such players have been looking for adjustments and clarity for a while, and waiting for the right moment to put it in the right way. With the regulations, we will see these solid steps and additional capital and talent coming to the sector as a result.
Regulations could have prevented the FTX crash
Meanwhile, some crypto opponents have stated that proper regulatory frameworks could curb the FTX crisis. Experts have said that Sam Bankman-Fried’s antics will be exposed much earlier. But when asked about the validity of this argument, Vaitkevicius said that was not the case. He emphasized that ftx is “one of the most audited players in the industry”. cryptocoin.comAs you followed, the stock market filed for Chapter 11 bankruptcy on November 11, USA. Vaitkevicius, however, says that the laws should also be followed:
The regulation is a good step forward, but for it to be functional in real-life situations and to achieve the goals pursued, other elements need to follow.
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