This Thursday the European Commission proposed a new regulatory framework for cryptocurrencies
. The "Regulation on Markets in Crypto Assets", or MiCA, acknowledges cryptocurrencies as financial instruments.
This label proofs that cryptocurrencies aren't going anywhere anytime soon, at the same time, the label results in increased regulatory burdens for the companies offering crypto-related services. These companies will now be considered as financial institutions.
At this time, crypto-assets service providers (CASP, for ex. Coinmerce
) as they are called in the MiCA bill, are mostly regulated in terms of anti-money laundering and counter financing of terrorism. MiCA will also enforce rules on custody, market abuse, pricing transparency, IT systems and security.
Receiving approval from any of the national regulators will allow a CASP to operate in the whole of the European Union. If MiCA gets accepted, it will turn the EU in the largest and most significant regulated market worldwide.