The European Parliament has given the green light to regulations regarding cryptocurrency licensing and fund transfers, paving the way for the MiCA regulation to be implemented in 2024.
What is MiCa Regulation in General?
The regulation would establish harmonized rules for crypto-assets at the EU level, thereby providing legal certainty for crypto-assets not covered by existing EU legislation. By enhancing the protection of consumers and investors as well as financial stability, the regulation promotes innovation and the use of crypto-assets.
The regulation identifies and covers three types of crypto-assets, namely asset-referenced tokens (ART), electronic money tokens (EMT), and other crypto-assets not covered by existing EU law. The legislation would regulate the issuance and trading of crypto-assets as well as the management of the underlying assets, where applicable, with additional regulatory rules aimed at ‘significant’ ART and EMT.
For more information, you can visit the European Parliament’s official page.
Members of the European Union’s Parliament voted 517 to 38 in support of the new crypto licensing system known as MiCA on Thursday, making it the world’s first large jurisdiction to have complete crypto legislation. The European Parliament also voted in favor of a second bill known as the Fund Transfer Regulation, which compels crypto operators to identify their clients in order to combat money laundering, 529 to 29, with 14 abstentions.
European Union lawmakers overwhelmingly supported measures to compel crypto wallet providers and exchanges to get a license to operate within the EU, as well as stablecoin issuers to maintain appropriate reserves.
To become legislation, the European Commission’s proposed Markets in Crypto Assets rule, launched in 2020, must be approved by the European Parliament and the EU Council. The major provisions will go into effect one year after they are published in the EU’s official journal, most certainly in June.
Statement from Binance CEO CZ about MiCA
Binance CEO CZ believes that while the fine details of the regulations are crucial, overall, this decision represents a pragmatic solution to the challenges faced by the industry.
”The European Parliament voted for MiCA to be implemented. This means one of the world’s largest markets is introducing tailored regulations for crypto to protect users and support innovation. The fine details will matter, but overall we think this is a pragmatic solution to the challenges we collectively face. There are now clear rules of the game for crypto exchanges to operate in the EU. We’re ready to make adjustments to our business over the next 12-18 months to be in a position of full compliance.”CEO of Binance, CZ.
He states that clear rules have now been established for cryptocurrency exchanges to operate within the EU. CZ also expressed his readiness to make the necessary adjustments to Binance’s business model over the next 12-18 months in order to achieve full compliance with the new regulations.