The European Union Economic and Financial Affairs Council, consisting of finance ministers of all member countries, gave the green light to the highly anticipated Crypto Asset Markets (MiCA) regulation after the vote on May 16. Here are the details…
Green light from EU to crypto regulation
Finance ministers from 27 member states voted in favor of the MiCA bill and amendments to various regulations and directives related to the new legislation. With the adoption of the MiCA, two more pieces of legislation were passed by the European Parliament, including the regulation on fund transfers and information accompanying certain crypto assets. As we have announced as Kriptokoin.com, the European Parliament officially adopted the MiCA legislation on April 20. Thus, it paved the way for final approval by the Council of Europe before the regulatory parameters came into force.
The legislation lays down clear regulatory rules and requirements for the use of cryptocurrencies and related services and activities across the European Union. The scope of the legislation covers a range of cryptocurrencies, cryptoassets, utility tokens and stablecoins. The next step in the long process for MiCA to become EU law requires publication of the bill in the Official Journal of the European Union. MiCA will come into effect within a year, meaning the regulations will finally be enacted in mid-2024.
The European Commission first proposed MiCA in September 2020. However, it faced many obstacles and delays in the legislative process. It has been generally welcomed by cryptocurrency service providers and supporters as it creates a single market environment across Europe on legislation, regulatory requirements and operating procedures. Key components of MiCA legislation include registration and authorization requirements for cryptocurrency issuers, exchanges, and wallet providers.
The law addresses many abuses
Stablecoin issuers must meet certain security and risk mitigation requirements. Cryptocurrency custody services, on the other hand, must provide adequate safety and security measures to address potential cybersecurity and operational failures. The legislation also provides a framework for preventing market abuse, “insider trading” and manipulative behavior in the cryptocurrency space.
As a result, after nearly two years of intense discussion and deliberation, the European Union (EU) has finally approved the Crypto Asset Markets (MiCA) legislative proposal. The proposal received unanimous approval from the Council of Europe. The finance ministers of EU member states also approved the legislation. MiCA was first implemented by the EU on September 24, 2020 to ensure financial stability and consumer protection. With the adoption of the regulation today, the long legislative process that has been going on for the last few months has come to a conclusion.
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