Buenaventura says MiCA is not a “magic bullet or a perfect solution.”
According to the regulator, investor protection at MiCA is “removed”.
The President of the National Commission for the Securities Market (CMNV) of Spain, Rodrigo Buenaventura, assured that although the Cryptoactive Markets Regulation (MiCA) will help regulate the Bitcoin and cryptocurrency ecosystem in the European Union (EU), it is not of short duration is a solution or a “panacea”.
During one speech This week, Buenaventura emphasized that MiCA is a fundamental step forward for regulation “But it’s not a magic bullet or a perfect solution to address this new market.”
According to the regulator, MiCA “does not address all the risks of cryptoassets nor does it provide all the solutions.” Besides that“The level of investor protection is far away” with this European regulation.
In addition, with MiCA, which has already been approved by the European Parliament, there will be “no investor guarantee fund”. “There will also be no reporting of transactions to the regulator, which allows monitoring of market abuse, and the custody requirements are more lax and benign compared to those that would apply to a fund or a bond,” said the head of Spain’s CNMV .
Against this background, Buenaventura summarizes: “MiCA is a first step in the regulation of crypto assets, but will not bring them to the same level of protection as financial assets.”
“Yes, before this regulation, we could define the world of cryptocurrencies as the ‘Wild West’ in terms of regulation, compliance and investor protection. “MiCA is coming to bring order, but without becoming Arcadia,” he asked.
In Greek mythology, Arcadia refers to a place where people live in harmony and where traditional values are important. This is a version of the biblical paradise.
The MiCA law is accompanied
The MiCA law, which will come into force in euro area countries from 2025, is a draft law for regulating the commercialization of cryptocurrencies in this region.
This regulation requires, among other things, the establishment of registers of service providers with cryptoassets and the implementation of operating licenses. Such a record it has already begun in Spain, a country that keeps an eye on cryptocurrency operators operating on Spanish soil.
However, MiCA has extensive regulatory support. In parallel to this law, further regulations were passed to close the fence even more to the cryptocurrency ecosystem in the EU. One of them is the DAC8.
For example, this regulation establishes the obligation for cryptocurrency exchanges to inform tax authorities about their customers’ movements with these digital assets.
In addition to DAC8, there are other rules on the way, such as the Ares Delegated Regulation (2023), which imposes restrictions that could directly impact Bitcoin.
The regulation provides for the European Securities and Markets Authority (ESMA) to be authorized to intervene directly in processes relating to Bitcoin or cryptocurrencies if it has reasons to do so. Including, Threats to User and Consumer Security.