Last Updated on 2 hours by John Piper

The European Union is looking at how Web3 can be integrated with transactional payments and traditional documentation. Mathieu Michel, Belgium’s digital minister, believes that the Markets in Crypto Assets law (MiCA), and a custom-made Blockchain network are the key to finding a solution.

This blockchain, also known as “Europeum”, is part of the EU’s Markets in Crypto Assets legislation (MiCA). This legislation is still being voted on. If it is approved, the European Union would have a regulation that applies across Europe to standardize crypto-assets. It would also allow for the development and launch of a European-wide blockchain.

Michel stated that the blockchain could be used to facilitate digital transactions within the EU. It would compete with Ethereum and Bitcoin in its function, to be able to both make payments and conduct smart contracts. If it launches successfully, the network could also be used for document storage at both a personal level and at a national level. This would improve storage by using digital and tokenized versions of property ownership, driving licences, and professional qualifications.

If legislation is approved, the blockchain will be built within the limits of regulations. The blockchain will be ” Built around the foundational values which underpin European society”.

What law is the EU’s Markets in Crypto Assets Law (MiCA).

In April, the EU will vote on the Markets in Crypto Assets (MiCA), legislation. In September 2020, the European Council introduced the legislation. As the digital asset market grows, the purpose of the wider regulatory proposal is to encourage innovation and improve investor protection.

MiCA, if it is approved, will create a common licensing regulation for cryptocurrency businesses. MiCA regulations would apply to all firms and businesses involved in crypto, including wallet providers and exchanges.

The law is currently accepted by the European regulators in principle. The legislation must still be formally approved and signed off by the EU’s Governing council, which is made up of national governments. It will then be made law. These are the fundamentals of the MiCA regulation.

Mandatory registration

All crypto-asset service provider (CASPs) and crypto issuers, such as wallet providers and exchanges, must register with the relevant national authorities in their jurisdiction.

Authorisation requirements

Before offering services to customers, crypto-asset service providers must obtain authorization from their national authorities.

Consumer protection

MiCA is designed to protect consumers by ensuring service providers have sufficient financial resources, are transparent with their charges and fees, and meet certain capital requirements and liquidity requirements.

Standardised approach

This law is intended to establish a uniform approach to monitoring and oversight of all cryptocurrency assets in the European Union. To maintain consistency, all national authorities will use the same legislation.

Anti-money laundering (AML), and Counter-terrorism Financing (CTF).

AML and CTF regulations will be enforced on service providers. This includes reporting suspicious transactions to the appropriate authorities and customer due diligence.

MiCA is a significant step in regulating the EU’s cryptocurrency industry and provides greater legal certainty to investors and businesses. Although the regulation is still in its proposal stage, it is yet to be seen how it will actually be implemented and enforced in practice.

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