MiCA – the pan-European anti-money laundering regulator is a key component of the new legislation. The EU’s Economic and Monetary Affairs Committee voted in favour of a new set of laws regulating the crypto industry (the so-called MiCA law). The EU also supported a law on the identification of participants in cryptocurrency transactions, which will allow the tracking and punishment of criminals who use the digital asset market for money laundering. MiCA crypto is registered in Malta and has control over the storage of all registered crypto assets.
The basic feature of MiCA crypto
The EU is proposing a new pan-European regulator, MiCA, which will help a victim of illegal laundering of cryptocurrency from brokerage companies. If your brokerage company is registered in another country, you will probably have to use the services of a foreign lawyer, as most cases do not consider individual claims. Fraudulent companies often resort to the method of transfer through cryptocurrencies, which is quite difficult to recover and it requires great efforts and expenses, but recently, when the EU put forward a pan-European commission to regulate all cryptocurrencies, it became possible! This is the first regulator that will help the victim in returning your money in the issue finance.
Types of MiCA crypto tokens
MiCA gives several types of tokens. Utility tokens: they certify the rights to the goods or services available under the DLT and are accepted only by the issuer of such token. Electronic money tokens: used as a means of exchange, the purpose of which is to maintain a stable value by linking with the value of fiat currency. Asset-referenced token: Tokens that maintain a stable value by tying to the value of multiple fiat currencies, one or more objects or crypto-assets, or a combination of those assets.
The main provisions of the MiCA crypto
European legislation on crypto assets should introduce the following rules into the regulation of the crypto market. Issuers are required to comply with strict operating and prudential rules with transaction limits of €200 million per day. Crypto-asset service providers (CASP) are required to comply with consumer protection requirements. They can be held accountable for losing investor funds. Trading platforms will be required to provide white paper and sanction the use of misleading information. Consumers will be provided with disclaimers mentioning the risks of losses associated with crypto assets, marketing rules for companies will be introduced. MiCA crypto will cover all market abuse related to any type of transaction or service, primarily market manipulation and insider agreements. Crypto service providers will be allowed to work in the EU. The largest crypto providers will be controlled by ESMA (European Securities and Markets Regulator).
Objectives of the MiCA crypto regulation
Provide legal certainty for crypto-assets not subject to existing EU financial services legislation, which is now clearly needed. Provide legal protection to investors who are actually harmed by fraudulent activities of unscrupulous brokers. Regulation of cryptocurrency markets in Europe. The Crypto Asset Market Regulation (MICA) is the first comprehensive document aimed at combating crypto assets, and introduces rules into the crypto-asset industry. Companies that sell cryptocurrencies to clients in the EU and CIS countries. Legal entity, which has the right to provide payment services to customers, as well as to issue electronic money and carry out their turnover. Subjects behind NFT collections that are subject to MiCA crypto rules.