The Markets Crypto-Assets (MiCA) Regulation is ready to be passed, bringing changes that could see crypto influencers face market manipulation charges if they are involved in swaying people for their own benefits.
European Union to Regulate Crypto
Last month, the European Council approved the Markets in Crypto-Assets (MiCA) Regulation, one of the first attempts globally at comprehensive regulation of cryptocurrency markets.
The regulatory draft covers every major aspect of the crypto industry from stablecoins to decentralized finance (DeFi), crypto mining, nonfungible tokens (NFTs), money laundering, and even crypto influencers.
Crypto Influencers Beware, MiCA is Coming
Patrick Hansen, the Circle’s EU strategy and policy director, has uncovered clauses in the legislation that could in particular land crypto influencers in trouble for commenting on social media without disclosure.
According to the legislation, if regulators deem that the actions of crypto influencers led to them making profits, the influencers could be charged for market manipulation. An excerpt of the clause is shown below:
Though the MiCA regulation initially received 28 votes against one at the European Parliament, the legislation still needs to pass one final vote before being put into practice.
On the Flipside
- While the EU looks to enforce the MiCA regulation soon, how it will monitor the industry and enforce the rules remains unclear.
Why You Should Care
Above all, the MiCA regulation would bring changes to the way crypto is operated, and one of its main purposes is to prevent both money laundering and individuals from facilitating the act.
Get more insight into the MiCA regulations and their potential impact below:
Read how the MiCA regulations will affect DeFi in: