The scope of MiCA, the EU’s regulatory framework for cryptocurrencies, could be broader and include rules for NFTs, a report suggests.
A new regulatory framework for cryptocurrencies in the European Union (EU) could require non-fungible token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. (NFT) issuers to file as companies and register with regulators.
As reported by CoinDesk France’s lawmakers have submitted a document that mentions the proposal in question, which would impose stricter regulations for the burgeoning NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. space. The document, which was reviewed by that news agency, is part of ongoing discussions on MiCA, the EU’s broad legislative package to regulate cryptocurrencies.
According to the document, “ an issuer of NFTs non-fungible token, a unique non-interchangeable piece of digital content that is stored on a distributed ledger (blockchain). would have to be a legal entity “ instead of a decentralized entity, and would also have to register with the authorities and comply with other consumer protection measures set out in the law.
The document is undated, according to the report, but it prepared ahead of a closed-door meeting on Friday morning European time. CoinDesk further notes that it was prepared by France, whose government is responsible for chairing the talks within the EU Council on MiCA.
Context: about MiCA
The European Union has been working on a comprehensive regulatory framework for cryptocurrencies. The Markets in Cryptoassets Regulation, better known by its acronym MiCA, was originally proposed in 2020 as part of the European Commission’s Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. Finance package.
The document spent much of last 2021 under review by the European Council, the European Central Bank (ECB) and the European Protection Supervisor. Discussions for final approval are taking place this year.
The proposal covers a number of issues related to cryptocurrencies, including a classification for digital assets and stable coins. It also establishes rules for cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. issuers and service providers.
As such, one focus of the project will be to unify cryptocurrency regulations among member countries. MiCA will offer licenses “ universal “to cryptocurrency platforms that will allow them to operate within the European Economic Area, even if they do not comply with the specific standards of each country’s legal system. Currently, EU countries have to issue their own regulatory requirements for cryptoassets according to some general guidelines.
Broader and stricter regulation?
The most recent consideration of possible regulation for NFTs would broaden the scope of MiCA. To date, previous reports on the regulatory framework have not addressed digital collectibles.
CoinDesk notes that European governments had hoped that CFTs would be excluded from the new rules, although the European Parliament has raised concerns about the sector because of the use of CFTs in money laundering schemes and other criminal activities, and has contemplated stricter rules. The publication noted, citing the document:
“This would therefore significantly broaden the scope of MiCA regulation” beyond its current focus on cryptocurrencies and stablecoins to assets in the art, entertainment and gaming worlds.
The news outlet adds that lawmakers appear to have the support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. of the European Commission, which is responsible for negotiating the remaining talks for MiCA approval, and which has also expressed concerns about the integrity of the NFT market an area or arena, online or offline, in which commercial dealings are conducted. because of its relationship to the most recent proliferation of scams and fraud.
According to the report, EU lawmakers and governments would not only be discussing stricter regulations for NFTs. Other issues related to the digital currencies space, such as the decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. autonomous organizations (DAOs), the Web3 and possible limitations for cryptomining have also been included among the topics of discussion.
It should be noted that a controversial provision that would limit the use of PoW-based cryptocurrencies, such as Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. The EU’s environmental impact was recently under discussion in the EU Parliament. After several votes, the provision was rejected by a majority of legislators and a draft MiCA without such a ban passed forward in discussions. .
There is no definite date for official approval of MiCA, but the regulatory framework is expected to be in place before 2023.
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Article by Hannah Estefania Perez / DiarioBitcoin
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