It will be interesting to see what type of impact the EU Crypto regulations that go live in 15 days time have on crypto. Markets in Crypto-Assets Act or MiCA for short is the regulatory name and is set for July 1st. Will it though as the make up of the EU Parliament has changed with many of the left being voted out and what was voted in as regulation could in theory now be voted out and redone. Will some countries leave the EU and reclaim back control that they relinquished handing it over to the EU?
As we know Binance is being baby sat and has already agreed that certain stable coins will not be available for registered EU users. This we will have to wait and see but any algorithmic coin is deemed illegal for now. The stablecoin ruling is that this has to be backed by securities either a currency like USD or gold..
We knew stablecoins were seen as a threat by the institutions and here we will see them split into two distinct classes. One that meets regulatory requirements and the unauthorized stable coins which will find themselves having further restrictions imposed. This is all about CBD's and digital currencies like the EU that they would like to implement without any competition. This is how the banks and other institutions become more and more relevant by controlling this sector that they have been fighting for so long.
Binance has agreed to phase in MiCA's plan through restriction of use and removal of unauthorised stable coins that are not meeting the regulators requirements.
The good news for crypto in general is that with the EU parliament having a shake up with the recent elections we should see some changes. There is already some updates that were being pushed through and hopefully these are placed on hold.
We know the left had their agendas and they were never pro crypto and with the media calling the far right when they are more like center right now in charge things should be in crypto's favor for once.
This is not saying everyone is pro crypto but, the good thing is they are anti the pro digital Euro and why the stable coin regulations should be looked at again. Will MiCA go live in 2 weeks time because this could easily be placed on hold for some amendments. The parties that were anti crypto and were all about delaying it's adoption at all costs have lost many seats and their influence has been severely weakened.
I must admit I am slightly nervous when I read reports that state Binance is towing the line when it comes to regulators requests and ca see the likes of HIVE being cast aside for being decentralized and not having CEO or leadership in charge. The change in personnel in the EU Parliament could not have happened soon enough besides all the other problems in Europe crypto at least has a better chance.