There are different regulations around the world that aim to regulate financial entities or companies that provide products/services related to crypto assets or cryptocurrencies. One of these initiatives is the Markets in Cryptoassets Regulation (MiCA) implemented by the European Union; however, even though it is a relatively new regulation, new ones have created some myths about this regulation. Below, we will learn about some of the most common myths associated with the Markets in Cryptoassets Regulation (MiCA).
Regulates only large entities or companies
Many people and companies believe that the Markets in Crypto-Assets Regulation (MiCA) applies only to large financial institutions and companies (crypto-asset service providers or CASPs). However, the truth is that MiCA is a regulation that applies to entities and companies of all sizes (small, medium and large), therefore, it ensures that all crypto-asset service providers comply with the different regulatory standards.
Regulates only entities and companies established in the EU
Many people and companies assume that the Markets in Crypto-Assets Regulation (MiCA) applies only to financial institutions and companies (crypto-asset service providers) based within the European Union. However, this is not entirely correct. MiCA regulates all providers “operating” within the territory of the European Union, even if they are established in other countries or regions. For example, a crypto-asset service provider based in the United States but providing services within the European Union will also be required to comply with this regulation.
Highly restrictive regulations that prevent innovation
Some people and companies think that the Markets in Cryptoassets Regulation (MiCA) is a very restrictive regulation, which can hinder technological growth and innovation. However, the truth is that this regulation (even though it has high standards) also allows flexibility and adaptation to technological advances, in addition to promoting innovation through a clear legal framework so that companies (that provide these services) can operate efficiently and legally.
Restrict or ban cryptocurrencies
Many people and businesses have come to believe that the Markets in Crypto-Assets Regulation (MiCA) restricts or bans cryptocurrencies. However, the truth is that this regulation does not ban cryptocurrencies; on the contrary, its objective is to help develop the market by regulating crypto-asset products/services to ensure transparency and consumer protection.
Just regulate stablecoin
Many people and companies have come to think that the Markets in Cryptoassets Regulation (MiCA) only regulates stablecoins (for example, Tether USDT). However, the truth is that this regulation is designed to regulate a wide range of cryptocurrencies, cryptoassets and complementary services, among which stand out electronic money tokens, asset-referenced tokens, stablecoins, cryptocurrencies (such as Bitcoin and Etherum) and other digital assets , which allows to guarantee greater control and transparency in the cryptoasset market.
What do you think about this topic? Do you want to know more about the Markets in Cryptoassets Regulation (MiCA)?
If you are interested in Pilsenga products or services, you can contact us by visiting the following link.
