Since December 30, the European MiCA regulation has entered into force. New legislation that is sure to shake up the world of cryptocurrency in Europe, here is what you need to know.
When the United States chooses euphoria, the old continent prefers wisdom. Since the election of Donald Trump, the world of cryptocurrency has been on the rise, and Europe has chosen to impose limits on it. The MiCA (Markets in Crypto-Assets) regulation harmonizes practices in the 27 member states.
An official license will be required and obligatory for all exchange platforms, management services and issuers of stablecoins, that is to say electronic currencies indexed to traditional currencies such as the euro. A change which guarantees a certain stability to the 18 million Europeans holding cryptocurrencies.
You will no longer have anything to envy of the banks
MiCA seems to have learned lessons from the recent economic crashes of the cryptocurrency sector and wants at all costs to avoid having to relive the FTX affair, where the equivalent of several billion dollars in electronic money was embezzled. This is why it defines clear limits between client cryptocurrencies and those of the platforms.
With a rule that is directly inspired by the banking system, your bitcoins and ethers can no longer be used by the platforms in personal investment initiatives. Your cryptocurrency becomes exclusively yours. Platforms will also be required to put in place risk management procedures validated by regulators and to maintain a minimum level of capital.
This new standard applies in the same way to all countries of the European Union. In France, the AMF (French market authority) will apply this measure; four approvals have already been granted to Société Générale Forge, GOin, Deblock and Hexarq.
The start of an anti-fraud fight
The establishment of a compulsory licensing system for all platforms wishing to do their business in European territories marks the end of the “anarchy” which reigned within the field of cryptocurrency.
This reform directly targets scams and fraudulent platforms which are commonplace in the sector. Companies that do not have this license will no longer be able to advertise or solicit customers. The AFM promised increased monitoring and flawless application of the new standards.
However, the MiCA method is far from being unanimous; the president of Binance France, David Prinçay, even described this reform as “inconceivable” according to the media Clubic. The platforms have a margin of 18 months to obtain their license.
