EU Completes MiCA Landmark Crypto Regulations Legal Text

By    23 Sep,2022

The complete language of the historic Markets in Crypto Assets legislation has been finalized by the European Union. Although the text is still officially up for comments, insiders briefed on the negotiations have said that it has been finished.

huangj.jpg

The bill’s rules could even apply to some assets classified as NFTs, according to a leaked copy of the legislation dated Sept. 20. This is because the proposal asks EU enforcers to prioritize “content over form” when enforcing the law.


NFTs are theoretically excluded from the framework, which calls for platforms to register with the government, stablecoin issuers to keep capital, and issuers of crypto assets to publish white papers with technological roadmaps.


NFTs are typically created with a singular digital identifier that cannot be duplicated, swapped, or divided; however, the rise of fractionalized assets, in which a number of fungible tokens are created to represent a single NFT, has regulators concerned that they may resemble traditional securities.

While the leaked draft, which was worked out in a series of technical meetings after a June 30 agreement, shows MiCA doesn’t apply to NFTs that are truly unique and unable to be traded with each other, the [final] compromise text states in a Recital that “the issuance of crypto-assets as non-fungible tokens in a large series or collection should be considered as an indicator of their fungibility.”


1/2

POPULAR CATEGORY