A leak of legislative documents in the press shows that the legal framework of MiCA could integrate stablecoins and fractional NFTs.
According to several sources familiar with the matter, the European Union has already completed the text of its “Markets in Crypto-Assets” legislation, says Mica. European regulators have also focused heavily on stablecoins, but unfractionated NFTs as well as DeFi seem spared.
Concretely, MiCA is a regulation that aims to protect users against certain risks related to investments in crypto-assets and will help them avoid fraudulent systems.
Stablecoins placed under the watchful eye of MiCA
Even if it focuses on fungible crypto-assets, the new bill which was revealed on Tuesday, September 20, however, encourages the authorities to “favor substance rather than form”. This implies that MiCA could possibly apply to tokens characterized by “a certain degree of fungibility”.
Once integrated into the legislative apparatus, MiCA will require issuers of crypto-assets to publish white papers (or white papers in French) containing technical forecasts on the future of the project. Additionally, ecosystem players will also need to register with authorities, and stablecoin issuers will be required to have sufficient capital in reserve. Capital whose management will also be examined.
Note that the project also includes changes relating to algorithmic stablecoins. The latter being currently in a difficult situation which can be explained by certain debacles, such as the case of the TerraUSD which has been stirring up crypto market news recently.
Thus will be placed under the radar of MiCA the mechanism of operation of stablecoins, ie the way in which they maintain their stability. And as we discussed earlier, certain contributions will be required from issuers of crypto-assets.
In response to this, the Minister of Economy and Finance, Bruno Le Maire, said:
“News in this ever-changing sector has confirmed the urgent need for EU-wide regulation. The MiCA regulation will better protect Europeans who have invested in these assets and prevent misuse. »
Another thing to take into account is that according to an old version of one of these documents, there were plans to limit stablecoins based on a currency other than the euro. Quite disturbing news for the whole crypto industry due to the fact that very popular and dollar-based stablecoins like theUSDC would no longer have access to the European market.
This rule has now been modified, so as to apply to all stablecoins and to integrate them into the framework of laws.
For the moment, the regulators of the European Union have not assigned a precise classification about crypto-assets. But split NFTs will potentially be considered to be securities.
This is an issue whose specter still hangs over the crypto sector, and which is currently unleashing passions in the United States as more and more economic players declare that most cryptocurrencies would be securities and would therefore be under the jurisdiction of the Securities and Exchange Commission.
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The European Union has already completed the text of its “Markets in Crypto-Assets” (MiCA) legislation
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