- MiCA bill removes restrictions on non-EUR stablecoins.
- The regulator’s legislation plans to regulate businesses that deal in crypto.
- Changpeng Zhao commends the bill.
Recent news articles state that the latest Markets in Crypto Assets (MiCA) bill has done away with the previously imposed limits on stablecoins that are not based on the euro.
After almost two years of discussions, the European Council and Parliament reached a consensus on the Markets in Crypto-Assets (MiCA) plan to regulate enterprises dealing in virtual currencies in the month of July 2022.
The legislation stipulates that stablecoin issuers retain reserves similar to banks and provides holders with quick redemption rights. It also requires that they operate with a license in order to legally do business.
In addition, MiCA holds cryptocurrency service providers accountable for any losses of investor assets that they cause. In addition to this, it subjects them to the restrictions that the European Union has in place to prevent market abuse, such as insider trading and market manipulation.
The majority of governing bodies have been keeping an eye on stablecoins for some time now. However, as a result of the Terra fall, there has been an increase in the number of people calling for more rigorous consumer protection measures for stablecoins, token issuers, and cryptocurrencies. In addition, global authorities have started taking more expansive steps to control the cryptocurrency ecosystem.
Commending the bill, Changpeng Zhao, CEO of the world’s largest crypto platform, said that said that the proposed legislative guidelines under MiCA were phenomenal and might become a worldwide norm for other agencies to adopt. “Liquidity is the best protection for users,” he said recently.