The Coindesk.com published a leaked European Commission document according to which regulation of the cryptocurrency market should be created within the European Union. The proposal to regulate the cryptocurrency asset market is already in the form of a document to be discussed by the Council and the European Parliament.
On almost 170 pages, the European Commission defines the framework for the legislation of the European cryptocurrency asset market (MiCA – Markets in Crypto-Assets). It defines what cryptocurrency assets mean or suggests how this market should be regulated in the future. However, the basic idea is to apply the same regulatory principles as those contained in the Markets in Financial Instruments Directive (MiFID).
Such an approach should ensure the establishment of a level playing field and legal transparency in the market for financial products, whether in their standard form or in the form of cryptocurrency assets. However, it is not clear whether the forthcoming regulatory framework will speed up or slow down the development of the cryptocurrency market, or even encourage it to move into illegal space. According to Coindesk.com, one of the obligations will be that traders or issuers of cryptocurrency assets wishing to do business in the European Union will have to have at least a registered branch in the territory of an EU country.