Sunday, August 14, 2022
Noncoiner
No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
Noncoiner
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Noncoiner
No Result
View All Result
Home Regulation

Stablecoins put on notice as EU lawmakers agree on landmark MiCA framework

by admin
July 1, 2022
in Regulation
0
Stablecoins put on notice as EU lawmakers agree on landmark MiCA framework


European Union (EU) lawmakers reached a political agreement on June 30 for crypto-asset regulation.

The final trialogue covered supervisory architecture, AML provisions, and stablecoins policy, among other provisions.

Having analyzed the agreement, Seth Hertlein, Ledger’s Global Head of Policy, said the regulation “will profoundly impact Europe’s future competitiveness and the viability of its Web3 industry.”

While there were many “hits” in the proposed framework, Hertlein also pointed out that he has his concerns.

Stablecoins to be limited in size and scope

Stefan Berger, the European Parliament Member and Rapporteur for the Markets in Crypto-Assets (MiCA) framework, broke the news on Twitter, adding that he was pleased that the “balanced” deal would include concessions including no ban on Proof-of-Work (PoW) technologies.

MiCA Trilog: Durchbruch! Europa ist der erste Kontinent mit einer Krypto-Asset Regulierung. Parlament, Kommission & Rat haben sich auf ausgewogene #MiCA geeinigt. Für mich als Berichterstatter war wichtig, dass es hier keine Verbannung von Technologien wie #PoW gibt /1

— Stefan Berger (@DrStefanBerger) June 30, 2022

The agreement marks the first major regulatory framework for cryptocurrencies but comes at a time when the industry is suffering a brutal downturn.

Given that a factor in current market conditions was the Terra UST de-peg, in thrashing out a deal, a point of contention among E.U. lawmakers was an appropriate stablecoin policy.

According to CNBC, under the provisional agreement, exchanges and stablecoin issuers will be met with new, more rigid rules designed to avoid a repeat of what happened at Terra and increase consumer protections.

Under the proposal, stablecoins are required to hold adequate redemption reserves to cover withdrawals. There will also be a threshold to the daily transactions for the biggest operators, thus limiting their scope and market influence.

“stablecoins like tether and Circle’s USDC will be required to maintain ample reserves to meet redemption requests in the event of mass withdrawals. Stablecoins that become too large also face being limited to 200 million euros in transactions per day.”

Hertlein points out the MiCA misses

As much as MiCA is praised as a much-needed comprehensive framework for the cryptocurrency industry, in assessing the proposal, Hertlein raised several concerns.

First, while Berger said PoW mining escaped a ban, Hertlein points out that the potential for a “backdoor ban” was snuck into the agreement.

“Within 2 years, the Commission must report on “mandatory minimum sustainability standards for consensus mechanisms.“

In addition, Hertlein called the approach to stablecoin regulation “particularly heavy.” Moreover, as no stablecoin currently meets the proposed rules, Hertlein implied that stablecoin issuers would be severely uprooted in scrambling to become compliant.

9/ ❌#Stablecoin regulation is particularly heavy and requires a physical presence in the EU. We won’t know what this means for decentralized stablecoins until we see the final text, but the % of current stablecoin circulation that complies with MiCA approaches zero.

— Seth Hertlein (@SethHertlein) July 1, 2022

MiCA is expected to come into force by 2024.

Get an Edge on the Crypto Market 👇

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

RELATED POST

Tornado Cash DAO shuts down as it “can’t fight the US” and keep contributors safe

India’s ED freezes $46 million of Vauld’s funds on money-laundering charges





Source link

Tags: AgreeFrameworkLandmarkLawmakersMiCANoticePutStablecoins
ShareTweet

Related Posts

Tornado Cash DAO shuts down as it “can’t fight the US” and keep contributors safe
Regulation

Tornado Cash DAO shuts down as it “can’t fight the US” and keep contributors safe

August 13, 2022
India’s ED freezes $46 million of Vauld’s funds on money-laundering charges
Regulation

India’s ED freezes $46 million of Vauld’s funds on money-laundering charges

August 12, 2022
Decentralized exchange dYdX blocks user accounts associated with Tornado Cash
Regulation

Decentralized exchange dYdX blocks user accounts associated with Tornado Cash

August 11, 2022
South Korea double downs on crypto regulation, arrests 3 people over illegal trading biz
Regulation

South Korea double downs on crypto regulation, arrests 3 people over illegal trading biz

August 11, 2022
MakerDAO plans against sanctions from USDC exposure
Regulation

MakerDAO plans against sanctions from USDC exposure

August 11, 2022
SEC, CFTC may seek crypto exposure reports from hedge funds
Regulation

SEC, CFTC may seek crypto exposure reports from hedge funds

August 10, 2022

RECOMMENDED

US Agencies Seized Around $30M of Crypto Related to NetWalker Ransomware Last Year

US Agencies Seized Around $30M of Crypto Related to NetWalker Ransomware Last Year

February 23, 2022
PotionLabs Kicks Off Auction for ‘Potion Unlock’

PotionLabs Kicks Off Auction for ‘Potion Unlock’

March 18, 2022
YieldTopia The Futuristic DeFi Protocol Reveals Its Sustainable Yield Mechanism — Backed by Its Utility-Driven Ecosystem — Starts With 42,069% APY For Early Adopters! — $YIELD Token Presale July 13-15

YieldTopia The Futuristic DeFi Protocol Reveals Its Sustainable Yield Mechanism — Backed by Its Utility-Driven Ecosystem — Starts With 42,069% APY For Early Adopters! — $YIELD Token Presale July 13-15

July 6, 2022
Crypto World Is Cautious of Finer Details In EU’s MiCA Law

Crypto World Is Cautious of Finer Details In EU’s MiCA Law

July 2, 2022

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • Tornado Cash DAO shuts down as it “can’t fight the US” and keep contributors safe
  • Why Justin Sun Was Blocked From This Ethereum DeFi Protocol
  • Monero’s Privacy-Focused Crypto Protocol Upgrade is Now Live
  • Altcoin Season 2022: Is This the Beginning of Big Gains for Alts?
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 noncoiner.com

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 noncoiner.com