It has been a controversially bullish year for cryptocurrencies. The world has either been adopting or applying strict regulatory policies to the digital money market of crypto. Latin and North American nations have shown their faith in cryptocurrencies, whereas several nations in Asia have turned their backs to crypto.
European Union’s Digital Finance Strategy now includes Markets in Crypto Assets (MiCA) to regulate the decentralized sphere of cryptocurrencies. MiCA proposed unconventional regulations for the crypto market, from the requirement of authorized permission to trade stablecoins, to mandating acquisition of legal status for small crypto projects before scouting investors.
However, the ‘Elon Musk’ clause of the 168-page document particularly grasps attention. Tesla CEO, Musk has been in the spotlight for his infamous crypto tweets about accepting and declining bitcoins by Tesla, and consistent ‘influencer marketing’ of meme-oriented altcoins. MiCA regulations limit Musk’s crypto presence on social media and require him to quit the wit he uses to manipulate crypto prices.
MiCA to Limit Musk’s Manipulation
The volatility of the crypto market often pushes potential traders away. Especially, when well-endowed entrepreneurs like Musk start to manipulate the market using their internet vogue. Regardless of crypto’s democratic and decentralized status, it becomes difficult for people to calculate the investment in it, attributed to the trending tweet’s effect on the volatility of coins.
The Crypto market has become riskier with Tesla’s fluctuating stance on Bitcoins and Elon Musk’s tweets on Doge, Floki, Shiba, Baby Doge. The prices and following of coins are heavily manipulated through social media by Elon Musk for his profits. MiCA regulations have banned celebrity manipulation of crypto markets, along with the acquisition of a celebratory position as a crypto influencer. Both will be applicable by National law and infringement will be punishable under criminal law.
“The regulation prohibits such market manipulations which could be punishable with criminal remedies depending on the applicable national law.” says the London School of Economics and Political Science (LSE) in their analysis of EU’S press release.
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