The whole language of the European Union’s Crypto Asset Markets (MiCA) regulation has been approved. The text is still formally open. These rules may be applicable to specific assets, including non-fungible tokens (NFTs).
Once approved, the MiCA Act would mandate that stablecoin issuers have capital and are wisely managed, that platforms register with authorities, and that issuers of digital assets disclose technological roadmaps.
The updated version of the proposal also includes revisions that may show how the EU would approach algorithmic stablecoins, which were notably left out of the MiCA’s purview when it was initially presented in 2020.
Concerns throughout the industry, especially for NFTs, have been expressed about the specifics of these regulations. Depending on how the regulation is written, it may or may not apply to trading platforms, issuers, and the majority of the NFT industry.