The MiCA law, which includes regulations for the cryptocurrency market in the European Union (EU), is ready to be voted on at the plenary session of the EU Parliament. Dates and details are as follows…
European Union ready to approve cryptocurrency law MiCA
MiCA is considered the most comprehensive regulatory framework for cryptocurrencies that are not covered by current EU law, aiming to remove legal uncertainty and introduce EU-wide harmonized rules.
The MiCA law was approved at the end of 2022 with a text covering three different types of cryptocurrencies. Voting for this law was originally scheduled for January 2023, but was delayed for technical reasons. The plenary session of the EU Parliament will also vote on the Fund Transfer Regulation (TFR). With the adoption of the MiCA law, cryptocurrency regulation in the EU will become clearer.
When will MiCA take effect?
As uncertainties regarding cryptocurrency regulations persist in the US, transparent regulatory efforts by the EU offer hope. The Regulation of Markets in Crypto-assets (MiCA) argues the opposite of the US Securities and Exchange Commission (SEC) Chairman Gary Gensler’s statement that the SEC audit promotes cryptocurrencies.
However, it remains unclear when the MiCA law will come into effect. Experts estimate that it will take approximately 18 months to reach effective regulation for Crypto Asset Service Providers (CASP). However, it remains to be seen whether the regulation will bring a change in the global crypto regulatory space.
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What does the MiCA bill mean for the cryptocurrency market?
The MICA bill aims to provide a regulatory framework for cryptocurrency regulations in the European region. The bill establishes specific rules and regulations for the three main classes of cryptocurrencies, tokens, cryptocurrencies and stablecoins.
The MICA bill defines the obligations of crypto-asset businesses and also envisions the creation of a registry system for all crypto-asset businesses serving in the EU. It also proposes specific rules on the taxation of cryptocurrencies.
The bill also obliges crypto businesses to take information and protection measures for their users to increase consumer protection. In addition, special rules are introduced for the issuance and transaction of stablecoins.
The MICA bill is considered a major step forward to reduce uncertainty in the EU’s crypto markets and ensure investor protection. As we quoted as Kriptokoin.com, the bill has been delayed since November of last year.
USA in critical period
On the other hand, SEC Chairman Gary Gensler, in his speech to the House Financial Services Committee on Tuesday, emphasized the need for scrutiny of crypto markets. Gensler thinks crypto exchanges should fall under the jurisdiction of federal regulators. We have included his recent statements before the US Congress in this article.
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