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The Markets in Crypto-Assets (MiCA) legislation has been approved by the Economic and Financial Affairs Council of the European Union.
The finance ministers from all 27 member states involved in the MiCA vote approved the bill earlier today. At the same time, they made several amendments and additions to the legislation. Two more pieces of the bill were added, including legislation related to the transfer of funds and particular crypto assets. The adoption of the MiCA law was formally voted in 16th May after being adopted by the European Parliament on April 20th.
The MiCA law provides clarity to crypto regulation in certain countries in Europe. The aim of the bill is to offer clear and standardised guidelines for the use and trade of cryptocurrencies. This encompasses cryptocurrencies, digital assets, stablecoins, and utility tokens.
Other components in the bill offer insight into the requirements for registration and operation for crypto exchanges, wallet series, and issuers of cryptocurrencies. The legislation also clarifies the requirements for stablecoin issuers, such as risk and security protocol.
What is the next part of the process for MiCA?
For MiCA to be implemented as official European Union law, the bill will need to be published in the ‘Official Journal of the European Union.’
Thereafter, MiCA will be introduced as law and the regulation will be implemented as legal infrastructure. This is set to take place sometime in the middle of 2024. The law has come a long way since it was initially proposed in 2020, but the process has seen delays for the law to be voted on and the process of adoption started.
Many in the cryptocurrency space are excited by the potential that the bill will offer to the industry. With a standardised infrastructure with fewer moving parts and dynamic regulation, those working in the space will have much fewer obstacles to get through to operate in the region.