With the growth of the crypto market in recent months, not surprisingly, European Union is considering using the virtual industry. The EU might be announcing the flexibility of its laws in MiCA, a regulatory scheme that has been in the negotiation stage since 2020.
The EU would be adapting its laws due to the strong crypto adoption that the continent is experiencing. Countries in Europe have changed their view towards crypto after Bitcoin, as its most significant market cap token, hit an ATH above $67,000.
MiCA Plan and its main goal
The MiCA plan, the acronym for Markets in Crypto Assets, is based on decentralized currencies, stable tokens such as the EUR or USDT, and to see what problems it will give the traditional financial economy. The members of the European Union would be creating laws that would go against money laundering and virtual fraud. NFT trading and DeFi projects are reported to be out from MiCA plans.
However, given the rise in adoptions of non-fungible tokens through virtual auctions in Europe, the European Union is considering extending its laws to the emerging market. Coindesk indicates that the EU could require NFTs creators to register in MiCA. On the other hand, the EU could create strict laws against Bitcoin mining due to the high electricity consumption.
European Union expands laws but becomes weaker against crypto trade
Although the European Union is considering expanding its crypto regulatory laws, its regulations are weaker. Within the political cabinet, some fans of virtual commerce ask to relax the laws but maintain that crypto regulation offers security to merchants.
The NFT trading regulations would also be wrong because exchanges and creators cannot be forced to register with MiCA. On the other hand, the regulatory project indicates that only legal entity that wants to create an NFT should be registered and not those belonging to decentralized organizations. Only those core companies in Europe looking to launch their NFTs should sign up to MiCA.
Last weekend Commissioner McGuiness Mairead asked the cabinet to use a complete crypto regulation scheme. McGuiness believes that it is time for the market to be regulated entirely and not in phases as the European Union has done in the last two years.