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Micah Law Draft Names CNMV and Bank of Spain as Crypto Watchdogs – Bitcoin News #cryptocurrency #bitcoin #crypto #blockchain

The latest MICA (in Europe’s Market Crypto-Assets Regulation) amendment names the CNMV and the Bank of Spain as the main cryptocurrency watchdogs in the country. The draft also states that companies providing services in the EU will be required to reside in a European country. Criterion excludes NFTs for now. Experts say the law could be in advanced stages by the end of this year.

Bank of Spain and CNMV have been named as the default crypto watchdogs.

There was a recent update to the latest draft of MICA (Europe’s Markets in Crypto-Assets Regulation), bringing a number of changes. For one, the law designates the Bank of Spain and the CNMV (National Stock Market Commission) as the default cryptocurrency watchdogs in the country. However, the ECB will be the designated body to govern crypto assets in the European Union.

Other interesting changes relate to the regulation of NFTs. As it stands now, these tokens will be outside the purview of regulation. This is because exchange value tends to be subjective and difficult to determine. The new draft sets a low bar for existing banking institutions to offer cryptocurrency-based services. This means that banks will not have to go through tough requirements, as they already comply with them. However, brokers and investment companies will have to start afresh.

Also, cryptocurrency-based companies providing services to Europeans must be located in the region to provide their services. With this measure, the EU seeks to protect its users by placing service providers within its jurisdiction.

Mica draft will be ready for next year

This new draft speeds up the regulatory process, and some experts are now expecting MICA to be ready for 2022. However, there are still some pending issues in the latest draft. The ECB is yet to commit to an official definition of a “crypto asset”. This is said to be needed to avoid conflicting legal interpretations in the future.

Also, the implementation of this law will replace existing regional rules already in force in some European countries. So the new mica draft should specify what the procedures would be in those cases. Central bank digital currencies such as the future digital euro and the already launched digital yuan will not come under the jurisdiction of this law.

Spain has been particularly harsh with its stance on cryptocurrency, targeting tax evaders who take advantage of digital assets. Last month a draft law approved by the Finance Commission of the Spanish Congress emerged that would force custody providers to provide information about their clients and their holdings.

What do you think of the latest Mica draft? Tell us in the comments section below.

image credit: Shutterstock, Pixabay, WikiCommons

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