- Two major EU regulations are said to be finalized by the end of June.
- EU institutions are still debating whether or not NFTs should be included in the scope of the MiCA bill.
- After talks, regulations will then be voted on formally in the plenary of Parliament before coming into force.
Two of the most important EU crypto regulations, which will have huge implications for the crypto market and the EU beyond, are about to be finalized.
The two EU regulations that will be finalized by the end of this month are MiCA, which is the Proof of Work (PoW) ban, and TFR, which relates to unhosted wallets.
The three main EU institutions – the Council, Parliament, and Commission – will have their last and concluding political trialogue meeting next Thursday on June 30 regarding the landmark MiCA bill.
Although almost all major issues have been agreed upon, there is still debate as to whether or not non-fungible tokens (NFTs) should be included in the scope of the MiCA bill.
The Council and Parliament were initially against the Commission’s proposal to include them in the scope of MiCA for consumer protection reasons, but seem to have accepted the proposal for now.
It is believed that the likely outcome will be a compromise where NFT issuers are mostly exempted, but companies such as marketplaces providing services on top of third-party NFTs are not. A last-minute extension of MiCA’s scope will require these companies to apply for a CASP license. However, small volume platforms may not have to.
The involved regulatory parties are confident that they will conclude all negotiations relating to the two regulations proposed by the end of June. From there on, the adopted compromise will then be voted on formally in the plenary of Parliament before MiCA comes into force.