It is threatening to have one of the biggest assets in the world be left unregulated. Having said that, it is true that any amount of regulation would label cryptocurrencies under the "centralized" territory, and it can be extremely difficult for the entire space to agree on how much centralization is acceptable to maintain crypto's decentralized nature. Amid this conundrum, the [European Commission proposed ](https://www.europarl.europa.eu/news/en/press-room/20230414IPR80133/crypto-assets-green-light-to-new-rules-for-tracing-transfers-in-the-eu)the European MiCA (Markets in crypto assets) in 2020. In April 2023, the European Parliament adopted European MiCA regulation. Let’s go into further detail. 

## What is MiCA (Markets in Crypto Assets)? 

To understand MiCA, we must first distinguish between some of the asset classes within the crypto spectrum. MiCA defines a crypto asset as a digital portrayal of value or "rights" that can be traded using [DLT ](https://allesovercrypto.nl/blog/distributed-ledger-technology-dlt)(Distributive Ledger Technology). MiCA regulation also differentiates between conventional cryptocurrency and derived "tokens". 

MiCA crypto, as the name suggests, is a name given to categorize the markets within the [crypto space](/news/article/marscoin-project-2023). This distinction is necessary as it helps regulatory bodies understand what sort of regulations suit what kind of asset classes. The European MiCA regulation is an attempt to jumpstart the initiative of regulating a high-demand asset class to bring more of it under the umbrella of control and scrutiny. 

Although the MiCA crypto regulation is only a step towards regulating a massively valued industry, the European Commission thinks it will serve as a stepping stone towards greater and better-directed regulation in the future. The European Commission believes so because the European MiCA Regulation is the first regulatory body of its kind. 

Even though the European Union has always believed in the utility of crypto assets, it was sceptical of the legal frameworks in and around the technology. The rampant security failures that kept popping up within crypto only reinforced the EU's stance on crypto. To understand the potential impact of the MiCA regulation, read up [on our site](/news/article/euroc). 

The European MiCA Regulation provides the bedrock upon which a crypto ecosystem can be built, with sustainability and scrutiny in mind. This regulation could effectively allow the industry to grow at the rate at which enthusiasts have always wished while at the same time ensuring that there are safeguards in place. Countries like Japan [are following suit](/news/article/japanese-crypto-regulation-call-made) in the regulatory space. 

## How does MiCA crypto regulation work? 

The MiCA regulation extends to three major crypto asset classes: 1) Asset-Referenced Tokens (ARTs), 2) Electronic Money Tokens (EMTs), and 3) Crypto Assets that are neither ARTs nor EMTs. 

ARTs are crypto assets backed by [legal tender](https://www.law.cornell.edu/wex/legal_tender#:~:text=Legal%20Tender%20refers%20to%20all,or%20services%20that%20were%20rendered.) or a combination of real assets. These can be fiat currencies, the gold standard, or commodities. This domain pretty much includes almost all assets that are not EMTs. As a result, these crypto assets are relatively more secure and stable, and one could argue that they are susceptible to a degree of centralization. 

Conversely, EMTs may also be backed by legal tender, but at most, for one fiat currency only. This is the biggest difference between ARTs and EMTs. ARTs diversify risk by depending on a basket of commodities/assets, whereas EMTs rely on single asset classes, behaving more like electronic tokens. 

Lastly, the MiCA regulation also extends to utility crypto tokens. These include all derived tokens for Metaverses, blockchains, etc., with their own local exchange tokens. These differ from the electronic security tokens, as is also reflected by the fact that they do not come under the securities' framework in most countries. 

It is essential to note that the MiCA regulation does not provide for NFTs or other DeFi elements. This is mainly because these DeFi assets, by nature, are decentralized and go through their own regulatory protocols. Passing these assets through a centralized regulatory framework would pretty much take away their main point of differentiation. 

## Authority 

The European MiCA crypto regulation distinguishes between crypto asset Issuers and [crypto Asset Service Providers](https://www.esma.europa.eu/qa-topics/crypto-asset-service-provider-casp#:~:text=Crypto-Asset%20Service%20Provider%20(CASP,European%20Securities%20and%20Markets%20Authority&text=Is%20a%20DLT%20MI%20operator,without%20an%20additional%20MiCA%20licence%3F) (CASPs). The MiCA crypto regulation would have considerable authority and oversight over these two major stakeholders within the forces in crypto-asset markets. Issuers must provide authentic, transparent, and continuous details of the products they are dealing in. Service Providers need to certify their merit, undergo registration processes, and even implement anti-money laundering protocols. Only after these providers have ascertained the MiCA regulation of their merit would they be allowed to operate under the European MiCA framework. The MiCA framework would also have complete control over demanding a transparent paper/money trail whenever they see fit. 

The MiCA crypto regulation would also oversee the environmental footprint of issuers and service providers under its umbrella. This will help crypto regain the goodwill lost due to unsustainably high-power consumption mining routines. 

## Cross-border cooperation 

Since the European MiCA regulation is the first of its kind, it has to fulfil a cross-border responsibility of trust and cooperation with other countries looking to build similar frameworks around crypto. This first-mover aspect will offer the MiCA regulation a solid reputation and could help establish it as the focal point of global crypto regulation. 

## Conclusion 

Although MiCA crypto regulation seems to be building toward a product offering that the larger market has been demanding for some time now, it would be interesting to see how crypto enthusiasts worldwide respond to this kind of regulatory oversight. Would they welcome this whiff of centralization in their decentralized product, or will they lash out and reject the muddying of their founding principles? 


MiCA: Responding to the crypto market’s call 

The European Union has released a set of documents relating to an EU crypto regulation action plan for implementing the European Green Deal and the REPowerEU Plan. Both are intended to save energy by digitising the energy sector. It shows that [crypto miners](/news/article/crypto-mining-farms) are on the radar of European energy planners.

## The REPowerEU plan

[The REPowerEU Plan](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52022DC0230&from=EN) was unveiled in May in response to Russia's invasion of Ukraine, which significantly impacted European energy supplies. The document outlines the EU's strategy for achieving energy independence from Russian fossil fuels by 2027.

The document was a follow-up to the first 'REPowerEU' document, released on March 8, 2022, and outlined steps to avoid Europe's fuel dependence on Russia becoming a weapon against the bloc.

### REPowerEU's primary goal is:

•	Ending Europe's reliance on Russian fossil fuels as soon as possible, ideally by 2027, with a two-thirds reduction in Russian gas consumption by the end of 2022.

•	Securing the EU energy system's long-term sustainability, cost-effectiveness, and energy supply through a controlled exit from this long-entrenched relationship with Russia.

## Commission Staff Working Document

According to the document, Europe accounts for about 10% of global crypto mining, with Germany and Ireland leading the continent and Sweden seeing a significant increase in activity after [mining was banned in China](/news/article/chinas-ban-on-crypto). The European Securities and Markets Authority is expected to draft technical standards for the crypto-mining industry.

The paper also stated that investors require more information about cryptocurrencies' energy consumption. It echoes the EUBOF document, that the EU crypto regulation should take the lead in developing international blockchain standards.

According to a communication from the Commission to bodies including the European Parliament, Council, and European Economic and Social Committee, energy consumption for cryptocurrency mining has more than doubled in the last two years. The proposed [Markets in Crypto Assets (MiCA)](/news/article/euroc) legislation would require crypto-asset market participants to make environmental disclosures.

Meanwhile, due to the tight energy situation this winter as a result of disruptions in Russian fuel supplies, the European Commission, the EU's executive branch, is urging member states "to implement targeted and proportionate measures to lower the electricity consumption of crypto-asset miners to put an end to tax breaks and other fiscal measures benefiting crypto-miners in the longer term".



EU Crypto Regulation to Save Energy

Recently, the United Kingdom and the European Union have introduced significant legislation to regulate cryptocurrencies. Both are working towards providing a safer environment to consumers. However, the divergence between EU and UK crypto regulations is becoming apparent. 

Since Brexit, the UK has been formulating new legal frameworks for different domains. Earlier, the [regulatory divergence](https://www.engage.hoganlovells.com/knowledgeservices/news/uk-and-eu-regulatory-divergence_1) for financial service providers gained much attention. Naturally, this divergence extended to virtual currency regularisation. 

The differences between the laws include the definition of crypto assets, virtual asset service providers (VASP), focus points in the enforcement strategy, and various others.

## How does UK crypto regulation differ?

One of the major differences between the EU and UK [crypto regulation](/news/article/crypto-regulations) is the definition. Britain’s Financial Conduct Authority (FCA) focuses more on “digital settlement assets”. It mainly includes stablecoins as a payment method. However, it does not declare them as a form of investment. On the other hand, the MiCA act of the EU has a broader definition which allows a variety of new tokens to be included. 

Similarly, there are differences in the definition of service providers too. The MiCA framework also proposes a broader interpretation of VASPs. It expands from fiat to crypto to crypto exchanges. Moreover, it covers advisory, trading, and custody services too. In comparison, FCA legal framework covers only custody and exchanges as VASP.

Last month, the [US and UK crypto regulation](/news/article/uk-crypto-regulation) authorities began collaborating to foster the cryptocurrency and NFT market, acknowledging the importance of regulatory partnerships for a safe market.     

## Differences in enforcement strategy

Currently, FCA’s primary focus is on stablecoins to mitigate consumer risk. It is also working with the regulatory bodies of the United States to regularise the market and foster financial innovation. Moreover, like the US’s SEC, it might act against scams and declare some coins and tokens as securities. On the other hand, MiCA focuses on a broad approach that includes the AML laws and establishing a risk-free environment for regional investors. 



UK crypto regulation diverging from the EU

The [crypto market is growing](/news/tag/bull market) daily, and more brokerages are emerging to handle crypto assets. One such brokerage which is looking to leave a mark is [BC Bitcoin](https://www.bcbitcoin.com/). It is a European-based platform which launched in 2017. 

It has limited options for fiat currencies. However, you can buy or sell a wide range of cryptos through the platform. It has not attracted much attention globally as yet. That’s why investors can be sceptical about its legitimacy. 

You can decide by evaluating the following features in this thorough BC Bitcoin review!

## Supported fiat currencies and cryptos

Currently, the platform offers its services to customers in Europe and UK. It accepts EUR and GBP deposits. However, you will not be able to buy or sell using any other fiat currency like USD, CAD, or AUD.

However, it allows you to deal with numerous cryptos. Over 180 coins and tokens have been listed on the exchange, including all the major coins like [BTC](/coins/btc), ETH, LTC, SOL, DOGE, etc.  

## BC Bitcoin trading fees

Using its services will cost you around 1% to 5% of the transaction amount. You can calculate the trading fees through the Buy Coin tab before the transaction. All you have to do is to enter the amount of crypto you want to buy/sell and choose your fiat currency.  

## Payment methods

In terms of payment options, it can be an impressive brokerage. It offers an array of payment methods that allow you to use its services efficiently. These options include credit and debit cards, faster payments, BACS, and instant SEPA. 

## Transaction speed

It can instantly transfer cryptocurrencies as it usually takes 5-10 minutes. Currently, the firm processes these transactions in one to two business days.  

## Security and regulations

To ensure the security of transactions, it follows a formidable verification process. So, if you want to use this service, you must comply with all the KYC requirements. You must provide your personal and financial details so BC Bitcoin can verify them. 
The exchange follows Lithuanian regulations as it is registered in this country. However, the UK’s FCA or any other European authority have not regulated the firm.   

## User experience

It offers you an excellent user experience. The platform guides you through the entire transaction procedure, which makes it easy to use. Moreover, it provides 24/7 customer support via different channels, including live chat, email, and phone. 

## Bottom Line

BC Bitcoin can be a viable crypto asset brokerage option in Europe. But it would not be the ideal choice in other parts of the world. Though it allows secure trading with over 180 coins, it only supports EUR and GBP fiat currencies. Moreover, you cannot get live insights as there is no price chart. Another dicey thing is that the UK’s FCA does not regulate it. 

On the other hand, BC Bitcoin’s trading fees and speed are not quite optimal. Various other options provide better speed with lower fees. 
 



BC Bitcoin review

The European Union (EU) has introduced [Markets in Crypto-assets proposal (MiCA)](https://www.consilium.europa.eu/en/press/press-releases/2022/06/30/digital-finance-agreement-reached-on-european-crypto-assets-regulation-mica/), a framework for regulating the crypto market in the continent. On 01 July 2022, a MiCA reporter, Stefan Berger, took to Twitter to announce that Europe has become the first continent to have a regularised crypto policy. 

![MiCA.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Mi_CA_136bb478bb.png)

Berger mentioned that the Parliament, Council, and Commission have approved a balanced MiCA framework. In addition, he indicated that PoW technology will not be banned; however, crypto issuers will be accountable for energy consumption and its impact on the environment. 

Where MiCA regulation has rejected the ban on PoW technology, it might still affect the digital asset market in various ways. One of the most affected crypto-assets can be stablecoins like EUROC and others. 

## MiCA’s harsh regulations for stablecoins like EUROC

The EU-endorsed MiCA framework has a dedicated section for stabilising stablecoins, including the [Euro coin](https://www.monitalks.io/news/article/euro-coin). The framework has considered the recent crash of Terra Luna, a stable cryptocurrency and formed policies to protect crypto consumers. 

For this reason, the framework proposed certain strict measures that the stablecoin issuers would have to take to mitigate instability and risk. Here are the proposed MiCA regulations for the stablecoins like EUROC:


1.	Stablecoin issuers must have an adequate liquid reserve with a 1:1 ratio.
2.	Stablecoin consumers can claim the token at any time without any additional fee.
3.	All stablecoins will be supervised by the European Banking Authority (EBA.)
4.	Non-European currency-based asset-referenced tokens will be regulated to ensure Europe’s ‘monetary sovereignty.’
5.	Asset-referenced token issuers would need to register themselves in the EU. 

## The stance of Circle’s Euro coin (EUROC) 

According to the Head of Global Policy and Chief Strategy Officer of Circle, Dante Disparte believes that:

>  “MiCA regulation will be to crypto what GDPR was to privacy.” 

Though many crypto users call MiCA a crack-down on the crypto market, Disparte reflected that MiCA policy will likewise work as a guiding framework for crypto issuers and consumers. 



MiCA regulations impact on EUROC and other stablecoins

The release of Euro Coin (EUROC) was announced by global fintech firm, Circle, on Thursday, June 16, 2022. Circle is the same firm that launched the [United States Dollar Coin (USDC)](/coins/usdc). Like USDC, Euro Coin will be a fully reserved, Euro-backed stablecoin. 

## How the Euro-backed stable coin works

The Euro Coin will function the same way as the Dollar Coin. Thus, 1 EUROC and 2 EUROC will be the equivalent of €1 and €2 respectively. 

As a regulated stablecoin, Euro Coin will be issued under the same full-reserve model of USDC. More importantly, the stablecoin was built on the same standards of security, transparency, and trust that have made USDC one of the most used digital currencies in the crypto finance space. 
 
Circle’s introduction of EUROC will help bridge traditional financial services and cryptocurrencies. Several businesses that do not have direct access to the Euro can use EUROC tokens as on-demand liquidity (ODL) to make and accept payments globally which settle in minutes.
 
Aside from this, the Euro Coins as a tradable token can be used to access crypto capital markets such as lending, borrowing, and trading. 

To ensure the security of the stablecoin to help prevent the ghosts of TerraUSD (UST), Circle has ensured that EUROC has 100% backing of euro-denominated reserves held conservatively in the custody of some of the leading institutions in the financial sector of the United States regulatory perimeter such as Silvergate Bank. 

Speaking on the [launch of EUROC](https://www.circle.com/en/pressroom/circle-announces-a-fully-reserved-euro-backed-stablecoin-euro-coin-euroc), co-founder and CEO of Circle, Jeremy Allaire said, “There is clear market demand for a digital currency denominated in Euros, the world’s second most traded currency after the U.S. dollar. With USDC and Euro Coin, Circle is helping to unlock a new era of fast, inexpensive, secure, and interoperable value exchange worldwide." 

Starting from June 30, EUROC will be made available to institutional clients through a free Circle Account. Uniswap, Huobi Global, Bitstamp, Curve, and Binance.US are among the exchanges that will be supporting the stablecoin. 

This will play an invaluable role in the lives of millions of people who would love to go about their financial lives with EUROC rather than USDC or other currency-backed stablecoins.


Circle launches Euro Coin

FTX, a cryptocurrency exchange, wants to expand into the United Kingdom and has begun negotiations with regulators to dominate the European market.

## How Will This Happen?

FTX's market regulation concepts and plans include numerous critical areas. To begin, authorities could propose a principles-based approach to overseeing spot and derivatives crypto trading markets, leveraging current policy goals that apply to traditional capital and derivatives markets. Customer and investor protection, market integrity, financial crime prevention, and overall system safety and soundness are among the objectives. If enacted, regulations that promote these goals will apply equally to all markets for crypto assets trading.

Second, FTX and other crypto platforms have introduced significant trading innovations, which should be preserved under a sound framework. This is because they reduce risk, increase capital efficiency, and safeguard investors, all of which benefit the general public. Among the key innovations are:

•	Automated risk-management systems that ensure customer accounts trading multiple assets do not go net negative across customer positions.

•	24/7 trading hours, which reduces risk.

•	Permissioning a non-intermediated market structure gives all investors equal access to the market and helps minimize conflicts of interest.

•	Free-market data aligns the platform operator's interest with the investors.

Third, a useful framework would enable crypto platforms to provide both spot and derivatives trading on crypto assets under a single unified system. A single rule book and technological platform would control risks associated with all trading activity in customer accounts. Regulatory frameworks were formed in mature countries, such as the United States, in response to fragmented markets for securities, commodities, and derivatives on such assets. FTX has shown that combining markets for both assets and derivatives provide significant benefits to market participants.

Because of the risk-reduction and customer-protection benefits of this one rule book paradigm, public policy should allow it.

Regulators in countries with multiple market regulators, such as the US, should collaborate and use their authorities when appropriate to accommodate this paradigm for crypto assets. Simultaneously, legislators could remedy any remaining gaps not adequately addressed under current powers.

Fourth, an acceptable regulatory framework for crypto-asset market regulation should be market-structure agnostic and explicitly permit non-intermediated markets. It could also take a functional approach, requiring the platform operator to disclose policies and procedures addressing critical issues like:

•	asset custody

•	key platform features related to the lifecycle of a trade

•	reporting of market activity to supervisors

•	provisioning market data to platform users

•	ensuring adequate financial resources

•	ensuring stable coins used on the platform are subject to adequate standards

•	protecting against cyber-attacks and financial fraud

More [Business news](/news/category/crypto-business-news).


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