MiCA bill, the European Union’s crypto regulation bill, scheduled to become law after some extra stages, might affect crypto influencers.
If cryptocurrency influencers don’t declare any conflicts of interest, the European Union (EU) bill intended to regulate cryptocurrencies might lead to charges of market manipulation.
After clearing a few more hurdles, 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 bill has been closely 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.
The passage Hansen emphasized states that failing to appropriately disclose a conflict of interest when expressing comments about crypto assets after taking investments in them may be construed as market manipulation.
The section is a component of the MiCA bill’s policies intended to “prevent insider dealing, the unauthorized publication of inside information, and market manipulation relating to crypto-assets, in order to safeguard the integrity of crypto-asset markets.”
The passage has attracted some interest from the cryptocurrency community, and a post about it in the cryptocurrency subreddit of Reddit shows that the community is in favor. 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 text was finalized on October 5.