This information is aimed exclusively at people who have their place of residence or business in Germany.
Main points:
- Milestone for crypto assets: EU regulates Bitcoin and Co
- Crypto Assets: MiCa creates clarity in the regulatory jungle
Bitcoin rate on a monthly basis
Source: IG trading platform
Bitcoin rate on a daily basis
Source: IG trading platform
On Friday, just before the weekend, a Bitcoin unit cost around $19,300. On a weekly basis, the most important crypto asset in terms of market size lost around 10 percent in value. In addition to fears of recession, the regulatory issue in the euro zone is causing a stir. The European Union has agreed on a regulation called MiCa (Markets in Crypto Assets) of crypto assets. Only on Wednesday, after lengthy negotiations, were money laundering laws enforced.
Crypto Assets: MiCa creates clarity in the regulatory jungle
“MiCa” creates clarity in the regulatory jungle and should act as a blueprint for other nations. However, it remains to be seen whether the difficult balancing act of preventing the misuse of crypto assets on the one hand without stalling innovations will be successful. For investors, a regulatory belt in the EU that does not suffocate the industry remains of great importance. With MiCa, the industry is likely to have received more than a pinch of seriousness at the same time, which could attract additional investors.
First and foremost, the industry can breathe a sigh of relief that there was no ban on PoW technology. However, such a ban cannot be ruled out in the future either.
In view of the forthcoming regulation, however, major downside risks for Bitcoin and Co are not to be expected. Monetary policy on both sides of the Atlantic is and will remain decisive for the market.