The EU Parliament’s passing of the Markets in Crypto Act, or MiCA, on Thursday has been hailed as a “landmark moment” for cryptocurrencies that will “help drive prices” for the likes of Bitcoin. This, according to the CEO of an independent financial advisory, asset management and fintech organization.
The comments from Nigel Green of deVere Group, come as Stefan Berger, the MEP who led “the bill’s creation, said in a statement that Europe is now the ‘first continent with comprehensive regulation for crypto assets’.”
“In order for new coins to be approved in the EU, it must be ensured in future that their business model will not endanger our currency stability. The new supervisory structures will also be a bulwark against Lehman Brothers moments like the crypto exchange FTX.”
The MiCA legislation “means that the EU will have a unified approach to crypto asset regulation across all 27 member states, meaning firms approved in one country can “passport” their operations into others.”
The deVere CEO says:
“This is a landmark moment for crypto. It signals the maturing of the market and underscores that cryptocurrencies are now mainstream. Crypto has now come of age in Europe as it is being brought into the regulatory tent and being held to the same standards as the rest of the financial system.”
Nigel Green claims he “has long-been campaigning for regulation of the cryptocurrency market since he launched deVere Crypto, a pioneering crypto exchange in 2018.”
As noted in the update shared by Green:
“We’ve been lobbying authorities on this issue as greater regulatory scrutiny is needed as digital currencies, including Bitcoin and Ether, are set to play an ever-greater role in the international financial system. We’ve been pushing for a strong regulatory framework to be established and approved at an international level.”
The update also mentioned:
“As such, we’re thrilled that the EU, the world’s largest trading bloc, voted 517 to 38 in favour of the Markets in Crypto Act, or MiCA, as it seeks to reduce risks for consumers buying crypto assets, meaning providers can become liable if they lose investors’ crypto assets.”
He continues that “with clear and consistent legislation in place, investors will have “more confidence in the market and feel more secure” in their investments.”
As stated in the update shared with CI:
“This will further attract more institutional investors who bring with them huge levels of capital, experience and influence, which can help increase demand and drive up prices in the long-term.”
The regulation will “help reduce fraudulent activities in the market, serving to ‘improve the wider reputation of the industry and increase mass adoption” which will also maintain crypto prices on an upward trajectory’.”
The new rules are expected to be in force from next year.
The move puts the EU ahead of the US and UK, which are yet to bring in legislation for the crypto market. However, a UK official on Monday said regulation could be implemented within a year.
Nigel Green continued:
“The US and UK now have the opportunity to catch up with the EU on crypto regulation, which they inevitably will do – and probably sooner than many expect. Again, this must be welcomed as it will protect investors, tackle cryptocurrency criminality, and reduce the potential possibility of disrupting global financial stability, as well as offering a potential long-term economic boost to those jurisdictions which introduce it.”
“Digital is the inevitable future of finance. Therefore, the proactive, forward-thinking work being done by central banks and governments, among others, in this area must be championed.”