MiCa Bill Spells Out Warning to Crypto Influencers

Key Insights

• • A section of the MiCA bill explicitly warns crypto influencers about making comments in the media. 
  • Patrick Hassen brought the section to the public’s attention in his tweet.
  • MiCA is expected to become fully operational by 2024. 

The Markets in Crypto Act (MiCA) is a cryptocurrency regulatory bill proposed by the European Union parliament. After several adjustments and debates, 28 members of the EU parliament voted in favor of the MiCA bill. 

The new legislation covers consumer protection, anti-money laundering (AML), environmental impact, and business impact of cryptocurrency. 

Since the details of the MiCA bill went viral, industry players and experts have dissected the content. Experts, however, pointed out one grey area that contains an explicit warning for crypto influencers. 

MiCA Bill Warns Crypto Influencers

The MiCA bill is cumbersome and bulky, so it will require close attention to pick out some salient clauses. Patrick Hansen, stablecoin issuer Circle’s director of EU strategy and policy, pointed out one of those clauses. 

In his tweet, Patrick Hansen called the public’s attention to making comments without proper disclosure as market manipulation. 

This section of the MiCA legislation considers commenting on crypto assets without disclosure as market manipulation. Commenting on social or traditional media about a digital asset and profiting from the said effect will also be considered market manipulation. 

Patrick Hansen further highlighted that when you’ve taken a position on a crypto asset— voicing an opinion and not disclosing a conflict of interest is considered market manipulation. 

This bill has gained some support from the crypto community, and a related post on Reddit’s cryptocurrency platform certifies this. “Shilling projects and never taking responsibility for the losses they inflict. It’s time those influencers get what they deserve.”

Experts say this section is part of the measures to “prevent insider dealing and unlawful disclosure of confidential information.” Also, checkmate “price manipulation related to crypto assets and ensure market integrity.”

However, all these will come into practice when the EU parliament passes the MiCA legislation. Experts opine that it will be fully applicable by 2024, with Hansen affirming it.

“The final texts will be voted  – a formality at this point – in the Parliament’s ECON committee, the Council, and plenary.”

Conclusion 

One of the grey areas that industry players should beware of is commenting on an asset both online and offline. Most times, these comments shape investors’ decisions and, in some cases, are made by insiders. 

Patrick Hansen, therefore, calls the public’s attention to that section. It is expected that more details of the MiCA legislation will be identified in days to come.