{"id":368815,"date":"2022-07-01T17:11:16","date_gmt":"2022-07-01T11:41:16","guid":{"rendered":"https:\/\/www.www.bullfrag.com\/the-eu-develops-what-could-be-the-worlds-first-comprehensive-regulatory-framework-for-cryptocurrencies-and-stablecoins\/"},"modified":"2022-07-01T17:11:16","modified_gmt":"2022-07-01T11:41:16","slug":"the-eu-develops-what-could-be-the-worlds-first-comprehensive-regulatory-framework-for-cryptocurrencies-and-stablecoins","status":"publish","type":"post","link":"https:\/\/www.bullfrag.com\/the-eu-develops-what-could-be-the-worlds-first-comprehensive-regulatory-framework-for-cryptocurrencies-and-stablecoins\/","title":{"rendered":"The EU develops what could be the world’s first comprehensive regulatory framework for cryptocurrencies and stablecoins"},"content":{"rendered":"
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European Union (EU) officials have agreed on a landmark law that will make life tougher for cryptocurrency issuers and service providers under a single new regulatory framework. <\/strong><\/p>\n Stefan Berger, Member of the European Parliament and rapporteur for the MiCA regulation – the person appointed to report on the proceedings related to the bill – broke the news on Twitter saying that a “balanced” agreement had been reached, which has made the EU the first continent with regulation of crypto assets.<\/strong><\/p>\n MiCA Trilog: Durchbruch! Europa ist der erste Kontinent mit einer Krypto-Asset Regulierung. Parliament, Kommission & Rat haben sich auf ausgewogene #Mica<\/a> geeingt. F\u00fcr mich als Berichterstatter war wichtig, dass es hier keine Verbannung von Technologien wie #PoW<\/a> gibt \/1<\/p>\n \u2014 Stefan Berger (@DrStefanBerger) June 30, 2022<\/a>\n<\/p><\/blockquote>\n MiCA Trilog: Durchbruch! Europe is the first continent with regulation of crypto assets. The Parliament, the Commission and the Council have reached an agreement on the balance of MiCA. It was important to me as a journalist that there was no technology transfer like PoW. \/1<\/p><\/blockquote>\n Known as the Markets in Crypto Assets (MiCA) framework, the interim agreement includes rules that will cover issuers of unbacked crypto assets, stablecoins, trading platforms and wallets in which crypto assets are held.<\/strong>according to the European Council.<\/p>\n Bruno LeMaire,<\/strong> French Minister of Economy, Finance and Industrial and Digital Sovereignty, he stated that the landmark regulation will \u201cput an end to the wild west of cryptocurrencies.\u201d<\/strong><\/p>\n Following the dramatic collapse of TerraUSD, The MiCA regulation aims to protect consumers by “requesting” stablecoin issuers to constitute a sufficiently liquid reserve.<\/strong><\/p>\n In a Twitter thread, Ernest Urtasun, a member of the European Parliament, explained that the reserves will have to be “legally and operationally segregated and isolated” and must also be “fully protected in the event of insolvency.”<\/strong><\/p>\n A cap will be set for stablecoins of \u20ac200 million in transactions per day.<\/strong><\/p>\n 3\/13 Large stablecoins will be subject to strict operational and prudential rules, with restrictions if they are used widely as a means of payment, and a cap of \u20ac200million in transactions\/day.<\/p>\n \u2014 Ernest Urtasun (@ernesturtasun) June 30, 2022<\/a>\n<\/p><\/blockquote>\n 3\/13 Large stablecoins will be subject to strict operational and prudential regulations, with restrictions on whether they are widely used as a means of payment, and a cap of 200 million euros in transactions per day.<\/p><\/blockquote>\n Cryptocurrency users on Twitter have already dismissed the regulations as unfeasible; Tether (USDT) 24-hour daily volumes are $50.4 billion (\u20ac48.13 billion) and USD Coin (USDC) $5.66 billion (\u20ac5.4 billion) <\/strong>at the time of writing this article. <\/p>\n There would also be difficulties in applying these rules to decentralized stablecoins, such as DAI.<\/strong><\/p>\n The deal came on the same day that Circle launched its euro-backed stablecoin: Euro Coin.<\/strong><\/p>\n Ace @circlepay<\/a> brings #EUROC<\/a> online, a Euro-backed digital currency, we aim to make this a trusted, well-regulated and MICA-conforming innovation. https:\/\/t.co\/mroCxMCxfs<\/p>\n\n
Stablecoins falter<\/h3>\n
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