Under MiCA, crypto influencers might face market manipulation charges


The European Union is poised to implement MiCA, a set of broad laws that may significantly restrict the region’s crypto economy.

In September, the European Union’s Markets in Crypto Assets (MiCA) law was completed. In October, European Parliament officials voted 28 to 1 in support of the law, which now requires a final vote.

The comprehensive measure addresses everything from stablecoins to cryptocurrency mining to nonfungible tokens (NFTs) and money laundering. However, there are provisions buried inside it that might have an impact on crypto influencers.

Patrick Hansen, Circle’s EU strategy and policy director, unearthed one of these sections on November 1. Crypto influencers who remark on social media without disclosing their identity may face legal consequences, according to the fine print. If they are found to profit from the consequences of their activities, it will be considered market manipulation in the EU if MiCA is implemented, he said.



The massive EU crypto cleaning

The language is imprecise, but it might include memes like Elon Musk’s Doge-Twit picture, which has been circulating. Some were perplexed as to why the same regulations did not apply to other assets.

Those in support, on the other hand, believe that crypto influencers and coin shills should be more transparent.

It is also unclear how it will be monitored and enforced. Nonetheless, it is clear that the EU is preparing to make things considerably more difficult for the crypto business and everyone affiliated with it.

Regulators believe that this is a positive step that will make the region more appealing to the crypto business. MiCA rapporteur Stefan Berger stated on November 2 that new laws are required if “Europe wants to be a significant player in the crypto game.”



Under the microscope, MiCA

In the interest of consumer protection, MiCA is cracking down hard on DeFi. This, however, may just become it into TradiFi, centralizing and regulating all parts of the industry.

It also intends to govern stablecoins and their issuance, as well as crypto asset service providers (CASPs). This would pave the way for properly regulated exchanges and brokers, perhaps preventing fraudulent activity.

The bill establishes three types of crypto assets. These are determined by whether or not the token strives to stabilize its value in reference to other assets.

Furthermore, it promotes the consumer protection card, although the main reason for MiCA is to combat money laundering. To that end, it seeks to align crypto firm laws with the same framework that governs banks. MiCA is unlikely to become legislation until 2024.