The EU’s Markets in Crypto Assets (MiCA) bill could have a significant impact on cryptocurrency influencers as several provisions imply strict regulation.
Patrick Hansen, Circle’s Director of EU Strategy and Policy, pointed this out, saying that commenting on digital assets and profiting from them without disclosing them could be termed market manipulation.
Crypto influencers beware: commenting on crypto assets on (social) media without being public and profiting from their influence will be considered market manipulation in the EU once the MiCA comes into force.@zachxbt pic.twitter.com/BflVXPazjS
— Patrick Hansen (@paddi_hansen) November 1, 2022
Hansen shared a screenshot of the clause. That part reads:
“By voicing an opinion about a crypto-asset, you may take advantage of occasional or regular access to traditional or electronic media, have previously taken a position in that crypto-asset, and benefit from the impact of that opinion on its price. crypto-assets without concurrently disclosing their conflicts of interest to the public in an appropriate and effective manner.”
The clause is vague and open to multiple interpretations, but its existence indicates that the EU may take action against those who promote cryptoassets without disclosing their profits.
The revelation elicited mixed reactions from the community, with many describing it as: Helpful To prevent shilling criticized Because there is a lot of room for abuse of that application.I had a question Raised On why it applies to cryptocurrencies and not to stocks or other financial markets.
Regulators around the world are increasingly paying attention to cryptocurrency influencers. The U.S. Securities and Exchange Commission (SEC) recently fined Kim Kardashian $1.26 million for undisclosed promotion of Ethereum Max (EMAX).
The MiCA bill, on the other hand, is not scheduled to be enacted until 2024. Regulators claim the rule will ensure consumer protection, but a member of the cryptocurrency community says the rule could turn his DeFi into a traditional financial system.
EU needs MiCA to become a big player in cryptocurrency
EU MiCA rapporteur Dr. Stefan Berger said regulation is necessary if Europe wants to become a big player in the cryptocurrency game.
“If Europe wants to become a big player in the cryptocurrency game, we need this regulation to build trust and create companies that innovate across this. #Crypt say sphere @DrStefanBerger.#mica
See ⤵️ pic.twitter.com/8pg4MxNFUQ
— EPP Group (@EPPGroup) November 1, 2022
According to Berger, the regulation creates trust between the industry and regulators. At the same time, it will create an environment that allows companies to innovate.
Lydia Pereira, Member of the European Parliament, said blockchain technology could be used to combat money laundering and even tax evasion due to the public and permissionless nature of the technology.