Regulation
the USA response
Europe: the Micafinally implemented, is rapidly shaping a new standard in the regulation of digital financial services, indirectly involving the position of the UNITED STATES (UNITED STATES).
Dante DisparteCircle CEO, stresses the critical importance of the United States reasserting its role as a global leader not only in innovation, but also in establishing the rules that will guide the future of the industry.
Let’s see all the details below.
Europe: MiCA and its global impact, including in the USA
As expected, the European Union will inaugurate the first phase of its comprehensive and historic law on the regulation of digital assets on Sunday.
With the new regulatory framework for cryptocurrency markets, Europe has managed to do what other jurisdictions, including the United States, are still putting off.
It is to provide legal and regulatory clarity for the entire digital asset market, not just a part of it.
Europe has indeed devoted the last five years to concerted political development.
Indeed, motivated by the possibility of entry of Big tech companies in financial markets, such as Meta’s (formerly Libra) Diem initiative, and concerns about uncontrolled cryptocurrencies.
Remember that the MiCA will have the effect of lastingly linking digital assets to the real economy, in a typically European way.
In particular, the MiCA addresses several issues by giving Stable Coin denominated in euros, a chance of success in a consumer market of 441 million people.
Although some aspects of MiCA are protectionist, aiming to protect European consumers and investors from the risks of cryptocurrencies, there is also an element of economic and technological sovereignty at play.
Offshore stablecoins, diplomatically called global stablecoins, are not permitted by MiCA.
The regulatory future of the United States and the need for a global response
MiCA represents a profound change for the industry cryptocurrency and the banking sector, demanding rigorous compliance and a substantial presence in the EU.
Authorized entities must have responsible management in an EU jurisdiction to operate across the federation, thanks to pan-European regulatory harmonization.
This model strengthens collective responsibility and consumer protection in the digital asset value chain.
Now that Europe has introduced MiCA, the United States must act to reaffirm its role as a global leader in financial services regulation and innovation, says CEO Circle.
A competitive approach could lead to the implementation of a “NAFTA for digital assets” across North America.
However, a more lasting solution could be the formation of a transcontinental Western alliance for digital assets, enshrining shared democratic values and shaping the future of exponential technologies.
Bitstamp prepares for MiCA implementation
Stamp-bitone of the leading cryptocurrency exchange platforms, has announced that it will be doing significant improvements to its offer by June 30, 2024. This announcement comes in preparation for the entry into force of the MiCA regulation across the European Union.
The MiCA regulation, an acronym for Markets in Crypto-Assets Regulation, will be operational from June 30, 2024. Bitstamp welcomed this regulation, confirming its commitment to fully comply with the new requirements.
Among the planned changes, Bitstamp will remove the EUR dominance in the EURT stablecoin and maintain the existing electronic money tokens (EMTs) on the platform that are not dominated by the euro, but are compliant with MiCA regulations.
However, the availability of these EMTs will be limited and no new EMTs will be listed unless they meet MiCA requirements.
James SullivanBitstamp UK CEO, expressed his support for the changes, noting the platform’s commitment to security and regulatory compliance.
Sullivan also said that this transition puts Bitstamp in a strong position to adapt to upcoming changes, thus maintaining direct contact with interested users.
Bitstamp’s announcement comes days after the listing of Bonk ($BONK) on its platform. An event that sparked speculation about an increase in the liquidity and value of the token.
$BONK saw a 2% gain following the announcement, only to fall 3.20% over the past 24 hours, settling around $0.00002223.