DeFi DeBrief #9: Regulation is here 👁
|Welcome to issue #9 of the DeFi DeBrief, your weekly digest of the biggest news in DeFi.
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EU crypto regulation enters final phase 🇪🇺
The European Union has debated digital asset legislation for the last two years. As of last week, members signed off the entire legal text for impending legislation, with 28-1 in favour of the proposal.
The Markets in Crypto Assets Regulation (MiCA) includes licensing requirements for companies like exchanges and wallets, alongside capital requirements for stablecoins. A related law will also force wallet providers to KYC all users.
The European Parliament will vote on final approval of the MiCA legislation later this month, after which it can become law.
Why should you care?
Expect to read a lot about what this legislation means for the blockchain ecosystem at large. Many suggest it could spell the end of the ‘wild west of crypto,’ which is no bad thing given the damage caused by events earlier this year.
That said, some are concerned the rules are overly restrictive, perhaps pushing developers beyond Europe’s borders. Either way, the rules are here, and they’ll help everyone in the industry plan the best path forward.
|IN THE HEADLINES
G20 to review crypto regulation this week 🌐
The Organisation for Economic Co-operation and Development (OECD) has provided the G20 with a framework to increase international transparency in crypto. The G20 is reviewing the 100-page document at its latest meeting.
Among other things, it includes a definition of crypto assets and NFTs, a plan for automatic international crypto tax reporting, and provisions for cryptocurrency derivatives trading, another step towards eliminating the wild west narrative.
Though some believe the regulations will only apply to certain countries, with the likes of the U.S. creating its legislation.
IN THE HEADLINES
Yuga Labs in SEC’s cross-hairs 🐒
Yuga Labs, the company behind Bored Ape Yacht Club and ApeCoin, is under investigation by the SEC for potential unregistered offerings. The critical question is whether some of its NFTs should be classified as stocks.
The SEC is also looking into how ApeCoin, the utility token of the Yuga Labs ecosystem, was distributed to holders. ApeCoin dropped 8% on the news, but many in the industry are optimistic about the developments.
They believe the case will clarify how the SEC views NFTs, enabling teams to move forward confidently, knowing their offerings sit well within the law.
Five short reads catching our eye this week:
TEMPERATURE CHECK 🔥
*Data last updated at 08:00 on 12th October.
TWEET CHECK 🐦
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