The MiCA Law Includes A Caution For Crypto Influencers
Following a few more stages, a component of the European Union’s crypto regulatory bill that might have an effect on numerous crypto influencers will become law.
If cryptocurrency influencers don’t declare any conflicts of interest, the European Union (EU) law intended to regulate cryptocurrencies might lead to charges of market manipulation.
After clearing a few more obstacles, the Markets in Crypto Assets (MiCA) bill, which was passed by the European Parliament’s Committee on Economic and Monetary Affairs on October 10, is anticipated to become law.
The passing of the law has been carefully followed by Patrick Hansen, director of EU strategy and policy at stablecoin issuer Circle. On November 1, he raised attention to a clause that dealt with public statements made without the appropriate disclosure.
Crypto influencers beware: Commenting on crypto assets in (social) media without disclosure and profiting from the effects of that will be considered market manipulation in the EU once MiCA is in force.@zachxbtpic.twitter.com/BflVXPazjS
The passage Hansen emphasised states that failing to appropriately disclose a conflict of interest when expressing comments on cryptoassets after holding investments in them may be seen as market manipulation.
The section is part of measures included within the MiCA bill aiming to “prevent insider dealing, unlawful disclosure of inside information and market manipulation related to crypto-assets, in order to ensure the integrity of crypto-asset markets.”
The paragraph has attracted some attention from the cryptocurrency community, and a post about it in the cryptocurrency subreddit of Reddit shows that the community is in favour. The thread’s leading remark reads as follows:
“Shilling certain projects and never taking responsibility for the losses they inflict upon people. It’s about time those influencers get what they deserve.”
Despite the fact that MiCA won’t be completely applicable until 2024, it is extremely likely to pass, with Hansen even describing it as a “sole formality” when the wording was finalised on October 5.
7/ Afterward, the final texts will be voted once more – a pure formality at this point – in the Parliament's ECON committee, the Council, and finally in the Parliament's plenary.
Based on similar financial legislation, this could happen between Dec 22 – Jan 23.
