For all the celebration of Europe’s MiCA — Markets in Crypto-Assets — as validating “the token economy,” appearances can be deceptive: Similar to the way one Meta Platforms Inc. investor described the European Union’s efforts to rein in social media, the new regulations will subject crypto to “being nibbled to death by ducks” — while regulators work out how to bring a hammer to a duck party.
While MiCA offers a specific path to regulatory approval for all sorts of crypto actors — exchanges, custodians, stablecoins, and token sales — its rules and requirements draw inspiration from TradFi. They include capital requirements that ramp up for the biggest tokens, transparent disclosure to fight Ponzi schemes, and increased oversight of service providers that want to set up shop in Europe. Infringements of MICA can cost up to 15% of annual revenue. The EU clearly wants to protect its 450 million consumers and harmonize rules across its 27 member-states.
Source: Bitcoin: Crypto Bros Hailing EU Red Tape Are In for a Nasty Surprise – Bloomberg
