MANY OF YOU SHARED THIS NEWS
By Mauro Marturano
But I am reasonably certain that, in 99% of cases, you don't even know why, by sharing it, it would have made sense to fall off your high chair as well 😂😂😂.
But let's put things in order, starting by explaining what MiCA actually is.
The MiCA Regulation, or Markets in Crypto-Assets Regulation, is the European Union regulation governing the crypto-asset market.
Its story begins on September 24, 2020, when the European Commission officially presented the legislative proposal as part of the Digital Finance Package. The project was developed within the Commission.
From that point on, the text went through the "normal" (🤡, editor's note) European legislative process. In the European Parliament, the dossier was assigned to the ECON Committee, and the main rapporteur became Stefan Berger, a German MEP from the European People's Party.
At the same time, the Council of the European Union got involved, representing (🤡) the member states. The Parliament and the Council then developed their respective positions and negotiated with the Commission until they reached an agreed text (🤡).
The political agreement was reached in 2022. The European Parliament approved the text on April 20, 2023, the Council adopted it on May 16, 2023, and the regulation was formally signed on May 31, 2023.
The legislative process is particularly interesting because, during the drafting of the regulation, the MEPs involved held meetings with numerous representatives of the financial industry and the crypto sector. The European Parliament's official documents record, among others, meetings with companies such as Binance and Coinbase.
This part of the text, apart from the 🤡, was copied from ChatGPT, as you may have guessed. Far too politically correct for Ito's rebellious soul.
That said, let's get to the question: if the European Central Bank (🤡) has always required commercial banks to maintain absolutely ridiculous reserve ratios, why would it have required, under MiCA, reserves of up to 60%?
It knows perfectly well that the reserve ratios required from banks have always been absolutely ridiculous and completely insufficient, and therefore has a guilty conscience.
It opposed the "new" system for as long as it could/wanted to.
Both could obviously be true.