On Tuesday, the Council of Europe, representing the 27 member states of the European Union (EU), unanimously approved the Markets in Crypto Assets regulation (MiCA), cementing a landmark in crypto regulation.
This significant move positions the EU as the first major jurisdiction worldwide to establish a crypto licensing regime
The approval of MiCA, which necessitates crypto firms such as wallet providers and exchanges to seek a license to operate throughout the bloc, was largely anticipated. The expected day has come, MiCA has passed the Council of Europe today.
The rights of crypto investors will be more prominent
MiCA also introduces various consumer protection rules aimed at reducing the risks of crypto service providers being liable in cases where users lose their crypto assets.
In addition to the introduction of the licensing regime, the council also approved new measures to combat money laundering activities related to cryptocurrency fund transfers. These steps further solidify the EU’s commitment to ensuring a secure and regulated environment for crypto transactions.
The MiCA bill had earlier received endorsement from the European Parliament in April, with its primary features being politically agreed upon in June. However, the implementation of the bill was delayed due to administrative hold-ups. It is expected that major provisions of the bill will take effect a little over a year after its publication in the bloc’s official journal, which is likely to occur in June or July.
Alongside the MiCA approval, finance ministers are expected to formalize consent to new measures that will permit tax authorities to share data on individuals’ crypto holdings. This move underscores the EU’s intent to promote transparency and uphold regulatory standards in the rapidly evolving crypto market.
In conclusion, the introduction of MiCA marks a pivotal juncture not only for the European Union but also for the global cryptocurrency industry. With EU law in effect, crypto companies will have the opportunity to leverage their licenses in one European country to extend their services across all EU member states. This development stands to transform the EU into a significant marketplace for the crypto industry, providing a robust, regulated environment that balances innovation with consumer protection. Indeed, the enactment of MiCA underscores the EU’s commitment to forging a path that ensures the growth and stability of the ever-evolving crypto landscape.
You can find past news about the law in this article.