Europe accelerates comprehensive set of rules to regulate and bring order to the cryptocurrency market

lupafilotaxia (75)in Project HOPE • last year

Hello dear readers, today I will not write about the setback that the cryptocurrency market has experienced in recent days, as it is a topic sensitive to divergent interpretations, so, I wanted to share contextualized information that will help us elucidate which actions could have triggered the current setback in most cryptocurrencies.

Now, my focus in this post will be geared towards elucidating how the comprehensive set of rules being pushed by the European Union to regulate and bring order to the cryptocurrency market, may or may not negatively impact the price action of cryptocurrencies.

In this regard, it should be noted that according to the international circulation portal "ElMundo", the European Parliament approved new regulations for the cryptocurrency market, namely; the regulations will serve to protect investors, as well as prevent legal activities linked to the movements of cryptoassets.

It could be read, that the new regulation, called MiCA (Markets in Cryptoassets, in English), also aims to ensure traceability of transfers to better detect suspicious activities, including money laundering.

Additionally a second regulation, known as Transfer of Funds, should allow for greater oversight of cryptoasset movements, including cryptocurrencies, as is the case with traditional finance.

It was learned that these new regulations "will mark the end of the 'wild west' era in the unregulated world of cryptoassets," said Spanish Green MEP Ernest Urtasun, one of the main promoters of the initiative in the legislative plenary.

In my view, this series of new regulations comes in the midst of the current downturn in prices that cryptocurrencies have experienced, so, from my perspective states and financial institutions on a global scale may be behind all the fear that has been generated in recent days.