As cryptocurrencies continue to see more widespread adoption worldwide, it is becoming even more important for countries to take the initiative and properly regulate cryptocurrencies. While regulation still remains a fairly divisive topic throughout the market, many are starting to understand its importance.
Furthermore, as cryptocurrencies start interacting with various forms of traditional institutions, it is becoming even more important to properly regulate them. An unregulated market matched with a heavily regulated one can lead to serious chaos, as the serious fluctuation of cryptocurrencies could put banks in a very difficult position.
However, when it comes to drafting effective legislation that controls and better regulates cryptocurrencies, the EU has knocked it out of the park. Not only do its policymakers have an in-depth understanding of the market as a whole, but they also understand the broader implications of what they are offering.
Lawmakers Almost Unanimously Vote for MiCA
The MiCA bill is one of the biggest bodies of legislation to come out in some time that specifically focuses on crypto regulation. Along with supporting clauses about which countries they can trade with, the bill also includes various provisions specifically surrounding money laundering, the environmental cost of cryptocurrencies, and various other consumer protection laws.
The new bill also has a separate section dedicated specifically for altcoins, since they interact the most with various other types of regulated financial institutions. Since they interact the most with all of these types of financial institutions, regulating them is of a much higher priority.
Therefore, it is suffice to say that this bill is incredibly robust and follows through on a lot of the necessary changes that need to happen throughout the crypto market. And as of now, it needs to go to parliament for a vote, which many are estimating will happen before the next year starts.
MiCA Will Make Major Changes to Crypto
MiCA is one of the biggest bills to target cryptocurrencies and is a major swing by the EU in an effort to better regulate the cryptocurrency market. As a whole, the crypto market has been vocal about their displeasure and disagreement with the bill.
However, that is not to say that all of the people in the crypto market feel this way about it. In fact, most of the investors in the crypto market believe that more regulation will make the crypto market seem more legitimate.
EU Will Soon Move to the DeFi Space
Other than looking to better regulate cryptocurrencies, the EU is also interested in regulating the many other subgenres that it has spawned. One of the more recent ones that it is looking into right now is the DeFi space.