Why MiCA adoption is a turning point for crypto ?

No one really cared on CT but something major and exciting happened yesterday : the first crypto regulation framework has been adopted !

What is MiCA ? Why is it important ? How does it impact NFTs ?

👇👇

1/13

https://pbs.twimg.com/media/FuP1s5AaQAA4Pc6.jpg

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: MICA stands for Markets in Crypto-Assets, and it's a regulatory framework adopted by the EU Commission to provide clear rules and guidelines for the use of crypto-assets and blockchain technology in Europe.

Basically a global playbook of what to do or not 📕

2/13

https://pbs.twimg.com/media/FuP1tRRacAEYbXw.jpg

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: MiCA aims to regulate service providers, including token or crypto issuers and CASP such as CEX.

They now have clear guidelines on who needs to obtain a license and who doesn't, bringing much-needed clarity and transparency to the space.

Useful when you start a business!

3/13

https://pbs.twimg.com/tweet_video_thumb/FuP1tvbaUAw8l3w.jpg

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: For example if you want to run an IDO, you will have to comply with a set of requirements like :

Whitepaper (incl. KYC and environmental impact)
Having a minimum reserve
Offering a 14 day withdrawal period (!)
etc.

Nothing which would turn down real projects imo

4/13

https://pbs.twimg.com/tweet_video_thumb/FuP1ughaIAAifUY.jpg

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A. Protect consumers who engage with crypto assets from any scams

B. Create regulatory harmonization, allowing companies to operate on an EU-wide basis

C. Create legal certainty for companies and institutions to enter the space

5/13

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: Once a legal framework has been adopted, it usually sets a precedent for all other countries in the world to follow, especially when initiated by the EU like GDPR.

The US regulation uncertainty might also push some projects to follow the EU one to protect themselves.

6/13

https://pbs.twimg.com/tweet_video_thumb/FuP1vfnaMAE1AHj.jpg

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: The anti money laundering bill is probably the part which a lot of web3 maxis won't like as it will require :

way more user KYC than before
transaction flag above certain amount
tightened control on CEX
etc.

However we knew that KYC was needed for mass adoption.

7/13

https://pbs.twimg.com/tweet_video_thumb/FuP1wn-aUAArC3p.jpg

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Well it's actually not 100% clear

Recital 11 states that if NFTs are issued in a “large series or collection” they may be considered to actually NOT be non-fungible, and could be subject to MiCA requirements.

8/13

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: However Recital 10 suggest that NFTs should remain outside of the scope of MiCA.

So the big question is, do we consider the standard 10k collection as a "large serie or collection" ?

9/13

https://pbs.twimg.com/tweet_video_thumb/FuP1xuyaQAA7O8H.jpg

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: We'll see in the next iterations but I assume they'll probably define thresholds in terms of mcap / supply / volume to be seen which we'll be higher than the standard 10k.

For sure, boutique collections are safe !

10/13

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: The regulations are expected to come into effect between June and December 2024, and anticipation is high for the positive impact they will have on the growth and development of the crypto ecosystem.

11/13

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<aside> <img src="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" alt="https://pbs.twimg.com/profile_images/1645883951351726080/I6L_8j_4_400x400.png" width="40px" /> maxbrs.sol @MaxBrsNFT: In conclusion, still a lot to do as devil hides in details (like the NFT supply threshold) but MiCA is already a game-changer for the crypto world, with overwhelming support from the EU.

I'm excited about it and will follow the next iteration 👀

12/13

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