The EU lawmakers are in action by approving the first comprehensive framework for crypto regulations.
The rules according to a report is the first comprehensive package globally that are aimed at the crypto industry regulation.
In EU parliament, 517 votes were in favor of the package while 38 votes were against it.
The legislation is about seeking investor's safety buying the crypto assets. The providers can become liable if they lose the crypto assets of the investors.
These rules are said to be imposing a number of requirements on crypto platforms.
Platforms will have to inform consumers of the risks involved with their operations.
As for the stablecoins like Tether, USDC, they will need to have reserves behind in meeting redemption requests in the event of mass withdrawals.
Crypto platforms will be banned or restricted if they don't ensure customer safety, threatens the integrity of the market or financial stability.
MiCA also is reported to addresses the environmental concerns surrounding crypto with the companies forced to disclose their energy consumption and also the impact of cryptocurrency on the environment.
Sounds good to me so far looking at this framework for crypto regulation. As this does look consumer friendly because investors do need safety and the crypto platforms should be made accountable for loss of investors money.
At least this may help in restricting a few scams.
What are your thoughts?
