The European Council’s Permanent Representatives Committee has approved MiCA, the Markets in Crypto-Assets regulation text, and sent it to the chair of the European Parliament Committee on Economic and Monetary Affairs.
Representatives agreed to move forward with regulating digital assets in the European Union through the MiCA framework.
Edita Hrdá, chair of the Permanent Representatives Committee, confirmed that the crypto framework proposal would be enacted “should the European Parliament adopt its position at first reading” in the same wording.
Once enacted, the bill is likely to have a massive impact on the crypto market because of its broad reach.
Among the many realms it addresses are the prevention of money laundering, consumer protection, the accountability of crypto companies, the environmental impact of the industry, and stablecoins.
The MiCA law is sure to spark crypto industry debate. It may also be just the first in a series of changes coming to the global crypto market. The European regulation lays the foundation for what could be a new era in operations for major crypto entities.
The MiCA proposal, first introduced to the European Commission in September 2020, aims to create a consistent regulatory framework for cryptocurrencies among European Union member states. Should the parliamentary committee approve the text, the policies could go into effect starting in 2024.
“It is important to ensure that the [European] Union’s financial services legislation is fit for the digital age, and contributes to a future-ready economy that works for the people, including by enabling the use of innovative technologies,” said the most recent MiCA text.
“The lack of an overall Union framework for crypto-assets can lead to a lack of users’ confidence in those assets, which could significantly hinder the development of a market in those assets.”
Policymakers within the EU Parliament, Commission and Council have discussed the implications of harmonising crypto regulations across their 27 member states since the introduction of MiCA, with progress delayed by debates on proof-of-work mining and stablecoins.
This will be a milestone for the cryptocurrency market, as there has yet not been such an extensive set of regulations in place.
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