MiCA, the highly anticipated cryptocurrency regulation bill of the European Union (EU), has officially approved. The European Parliament has announced the date the law will enter into force.
The decision of the European Parliament for the crypto money law MiCA has been announced
After a series of delays, the European Parliament finally voted on the Crypto Asset Markets Act, known as MiCA. The legislation, which was first introduced in 2020, now needs approval from the Council of Europe before it can be published as an effective regulation.
On 20 April, immediately after the vote, MiCA’s rapporteur and Member of the European Parliament announced that the bill had been adopted.
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When will MiCA take effect?
The legislation, known as MiCA, prepared by the European Union (EU) to regulate the crypto money industry, was approved by the European Parliament with 517 votes. This legislation, which was adopted despite 38 negative votes, needs to be submitted to the Council of Europe for approval for the enactment process.
The Council’s approval is required for legislation to become law, although experts say the Council rarely disagrees with parliament. MiCA will be published in the official journal of the EU in June and will enter into force in 2024. We have included the details of the bill to be implemented as Kriptokoin.com in this article.
What does the MiCA bill mean for the cryptocurrency market?
With MiCA, European policymakers aim to establish a standardized regulation to establish harmonized rules for cryptocurrencies at the EU level, thereby providing legal certainty for the market. The regulation will establish guidelines for the operation, structure and governance of cryptocurrency production. It will also present guidelines on transparency and disclosure requirements for issuing and trading crypto.
The regulation is often perceived with cautious optimism. However, there are some issues with the 400-page document, most of which was put together a few years ago. The current draft does not generally mention DeFi, does not address the growing crypto lending and staking industry, and does not specify any rules for NFTs.
MiCA approved, will the EU accept it?
At the last panel during Paris Blockchain Week 2023, Chainalysis EU policy head Janet Ho pointed out that MiCA’s success will depend on solid feedback and reworking of certain parts of the documents. Nadia Filali, Blockchain program director of the Caisse des Dépôts Group, agreed, emphasizing the importance of governments, regulators and industry participants co-developing regulation.
However, EU officials emphasize investor safety as MiCA’s main task. As Joachim Schwerin, one of the leading economists of the European Commission, said, MiCA aims to minimize the negative consequences of events such as FTX and BlockFi bankruptcies in the future.
MiCA is a legislation prepared and adopted by the European Union to regulate the crypto money industry. The bill was approved by the European Parliament on 20 April with 517 votes. It now awaits the approval of the Council of Europe.
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