Is Markets in Crypto-Assets Regulation Good News for Crypto Fans?
Europe made a giant leap forward in the cryptocurrency sector on October 10, 2022, as lawmakers voted 28 to 1 in favor of the Markets in Crypto Assets (MiCA) regulation bill. The law, which is expected to come into effect in 2024, encompasses several aspects of the crypto market, including stablecoins, consumer protection, and the prevention of money laundering.
Will MiCA regulation shape the future of the online casino industry as well?
The online casino industry is one of the sectors where crypto is among the hottest topics, especially because the number of operators accepting BTC and other digital currencies is continuously growing. Though it’s still too early to make any assumptions, perhaps the number of players more open to using this payment option will increase significantly.
Overview of MiCA Regulatory Framework
Due to increased public interest within the EU in cryptocurrencies, lawmakers started gradually establishing the groundwork for MiCA in 2018. In September 2020, The European Commission (EC) adopted the digital finance package which included this bill.
Two years later, in June 2022, the Council presidency and the European Parliament reached a provisional agreement on the proposal, paving the way for a new era in payments.
The crypto assets-related fields to be regulated when the law comes into force include among all:
- Custody, administration, and placement
- Operation of a trading platform for crypto assets
- Exchange for fiat currencies or other cryptocurrencies
- Execution of orders for crypto assets on behalf of third parties
- Reception and transmission of orders for crypto assets
- Advice on cryptocurrencies
Worth clarifying is that this regulation will not encompass central bank digital currencies, for short CBDCs. However, it does place significant requirements on the most important stablecoins, so-called global stablecoins (GSCs).
Interestingly, despite their close relation with cryptocurrencies, non-fungible tokens AKA NFTs are currently excluded from the regulation. However, the fact is that they are spreading at the speed of light all over the world, so European Commission plans to create the necessary legislation within 18 months. In addition to this, the EC intends to put more focus on the decentralized market (DeFi) as well.
Closer Look from the iGaming Industry’s Point of View
All in all, as cryptocurrencies continue to conquer versatile spheres of our lives, the need for a proper regulatory framework to define the status of this payment option grows as well. Some countries are more some less open to embracing them, but the fact is that they are here to stay.
As there has yet not been such an extensive set of regulations regarding cryptocurrencies, MiCA is indeed a huge milestone for the market. It will most certainly represent a core pillar for regulations in other regions, as they will probably rely on its grounds when shaping their own crypto-related laws.
Do you think MiCA regulation will have a significant impact on the future of crypto gambling? Do you think the number of players using BTC and other cryptocurrencies to deposit and withdraw will grow as soon as the regulation comes into effect?
Share your thoughts and impressions with us in the comments section below!
Source:
“EU Lawmakers Pass Landmark Crypto Regulation Bill”, Nambiampurath, Rahul, investopedia.com, October 11, 2022.
Frankey78
1 year ago
The bill outlaws anonymous Crypto transactions in, out and across the EU. Both parties of anonymous transactions will automatically become suspects of money laundering. It will prevent money laundering but even if most exchanges or wallet providers require proper verification it didn't stop millions of accounts getting...
The bill outlaws anonymous Crypto transactions in, out and across the EU. Both parties of anonymous transactions will automatically become suspects of money laundering. It will prevent money laundering but even if most exchanges or wallet providers require proper verification it didn't stop millions of accounts getting raided, taken over and emptied on every major player across the industry. The damage done this year alone is more than 10 billion dollars. On of the basic ideas behind crypto currencies was anonymity. That's now history. Here in Germany, transactions in crypto currencies became more difficult as normal online banking. But that's okay, I can clean any amount of money by paying cash as Germany has no limit to cashpayments.
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tough_nut
1 year ago
This will most definitely change a lot. Although I imagine that not everyone will be happy, this will undoubtedly provide users of cryptocurrencies a greater sense of security because they will know that some form of regulation is in place.
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Frankey78
1 year ago
11 billion dollars damage so far this year through raids and scams. So much for security.
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Dzile
1 year ago
I’m sure people will become even more open to crypto, once it becomes fully regulated.
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Frankey78
1 year ago
@Dizle Are you sure ? You have to sign up and get verified with a mayor platform like coinbase, genimi or uphold.... Not all operate in every EU country. Exchange some fiat into crypto currencies. That cost fees. You can use the Crypto but remember its not anonymous anymore. So, what's the point then. You paid a fee...
@Dizle Are you sure ? You have to sign up and get verified with a mayor platform like coinbase, genimi or uphold.... Not all operate in every EU country. Exchange some fiat into crypto currencies. That cost fees. You can use the Crypto but remember its not anonymous anymore. So, what's the point then. You paid a fee and if you consider the huge amount of energy that got wasted mining the Crypto you might as well use just fiat from your bank account. After winning some or the price for bitcoin rises you want to put the bitcoins from wallet into your normal account? In Germany you are allowed to cashout the exact amount you paid in. Everything more has to stay in your wallet for 12 months. And look what happened during the financial crisis in Argentina last year. As the countries currency deflated more and more people exchanged their savings into crypto. The cash was worthless. All the saved bitcoins were useless. Because no store accepted a crypto code as payment for, lets say, a loaf of bread. Bitcoins used to be great but those times are gone.
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