MICA; The sheriff of the new west

A new player arrives in the new west, #MICA, carrying a powerful regulatory weapon on its belt regarding blockchain and cryptocurrencies, aiming to enforce its law. The European Union’s Markets in Crypto-Assets Regulation seeks to bring order, control, and a sense of sanity to the crypto-assets market, although it is true that it does not apply initially to all markets or, rather, sectors. There is no doubt that it will evolve and absorb the entire industry like a black hole. MICA is expected to come into effect in the second half of the year 2024 (June/July), applying to cryptocurrencies (such as #Bitcoin and #Ethereum), utility tokens (which grant access to goods or services), and security tokens (which represent financial assets).

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MICA will also establish a set of requirements and licenses for crypto-asset service providers, including:

* Registration requirement

* Capitalization requirement

* Disclosure requirement

* Consumer protection requirement

Its functions will also be aimed at imposing prohibitions on misleading advertising and the use of crypto-assets for money laundering or terrorist financing. Undoubtedly, this is an important, innovative, and much-demanded regulation aimed at creating a robust regulatory framework in the crypto-assets market, helping to protect users and promote the responsible development of the crypto-assets markets.

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At BELOBABA, we are very aware and highly committed to this process. Our responsibility, positioning, and brand have compelled us to comply with the highest standards of security, quality, and auditing regarding the origin of funds and the registration of all our clients. On the communication side, we have always sought a neutral and unbiased approach, staying measured and very protective of the results we provide to our clients month after month. For this reason, we welcome the fact that, at least initially, the professional and regulated sphere of this sector will play on an even field and set an example for the rest of the actors in this incredible industry.

#Belobaba is directly aligned with the benefits that the #MICA law will bring initially, especially in terms of protecting consumers from scams, deceit, and manipulations. We achieve this by ensuring that our clients have access to accurate information about our investments, training, and best practices. We promote responsible and sustainable development by being transparent with our investors and the projects we invest in. We also implement robust and continuous anti-money laundering measures, establishing requirements for both client identity verification and transaction monitoring.

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With this initial European approach and initiative, the aim is to seek a harmonizing effect among all affected parties and across all member countries. This will prevent fragmentation in this strategically vital area for the growth and competitiveness of many #EU countries in the face of larger continents. We can view it from various angles, and the most relevant aspect for me is the boost it provides to innovation (even though MICA may seem restrictive initially). By establishing clear and secure rules, companies and investors gain more confidence in participating in this emerging market, fostering innovation in the long run.