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Mahesh

08/07/22 21:17 PM IST

EU law to take on crypto badlands

In News 
  • The European Parliament, Council and Commission approved new provisions on the supervision of cryptoasset service providers (CASPs), consumer protection and environmental safeguards for cryptoassets, including cryptocurrencies like Bitcoin and Ether.
MICA 
  • It seeks to address concerns like money-laundering, protection of consumers and investors, accountability of crypto firms, stablecoins and the environmental footprint of crypto mining.
  • It excludes NFT (non-fungible tokens).
Provisions 
  • MiCA would mandate currencies like stablecoin issuers to maintain minimum liquidity to provide for sudden large withdrawals by users, and the reserves must also be protected from insolvency.
  • The European Banking Authority (EBA) has been brought in to supervise stablecoins, and the law asks stablecoin issuers to provide claims to investors free of charge.
  • Large coins which are used as a means of payment will be capped at €200 million worth of transactions per day.
  • MiCA requires the EBA to maintain a public register of non-compliant crypto asset service providers (CASPs).
  • Mandatory to declare Environmental footprint: Under MiCA, crypto companies will be required to declare their environmental and climate footprint.
Source- PIB 

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