Mica bill names CNMV and Bank of Spain as crypto watchdogs – Bitcoin News

The latest revision of Mica (Europe’s Markets in Crypto-Assets Regulation) names the CNMV and Bank of Spain as the most important cryptocurrency watchdogs in the country. The draft also stipulates that companies offering services in the EU must be based in a European country. The standard excludes NFTs for the time being. Experts believe the law could be at an advanced stage by the end of this year.

Bank of Spain and CNMV referred to as standard crypto watchdogs.

The latest draft of Mica (Europe’s Markets in Crypto-Assets Regulation) was recently updated and brought many changes. For one, the law designates the Bank of Spain and the CNMV (National Stock Market Commission) as the standard cryptocurrency custodians in the country. However, the ECB will be the institution supposed to rule over crypto assets in the EU.

Other interesting changes have to do with the regulation of NFTs. As things stand, these tokens would not fall within the scope of the regulation. This is because exchange value seems subjective and difficult to determine. The new draft sets a low bar for current banking institutions to offer cryptocurrency-based services. That means banks don’t have to meet strict requirements as they already meet them. However, brokers and investment companies have to start from scratch.

In addition, cryptocurrency-based companies providing services to Europeans must be located in the region in order to be able to offer their services. With this measure, the EU aims to protect its users by having service providers in their area of ​​responsibility.

Mica Draft should be ready for next year

This new draft speeds up the regulatory process and some experts now expect Mica to be ready by 2022. However, the latest draft still has some unanswered questions. The ECB has not yet agreed on an official definition of “crypto asset”. This is necessary to avoid contradicting legal interpretations in the future.

Furthermore, the implementation of this law will replace the regional regulations already in force in some European countries. Therefore, the new mica draft must specify how to proceed in these cases. Central bank digital currencies, such as the future digital euro and the already introduced digital yuan, would not fall under the jurisdiction of this law.

Spain has been particularly drastic with its stance on cryptocurrency, targeting tax evaders using digital assets. Last month, a bill approved by the Spanish Congress’ Finance Commission was tabled that would require custodians to provide information about their customers and their holdings.

What do you think of the latest mica design? Let us know in the comments section below.

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