European Union finance ministers vote unanimously to adopt the bloc’s Markets in Crypto-Assets regulation.
The European Union’s Economic and Financial Affairs Council – made up of finance ministers from all member states – gave the go-ahead for the expected regulation on the crypto-asset market (MiCA) after the vote on May 16.
Finance ministers from 27 member states approved the approval of the MiCA Law and amendments to several regulations and directives related to the new law. Two other pieces of legislation, including legislation on information accompanying the transfer of funds and certain cryptographic assets, were adopted by the European Parliament alongside the adoption of MiCA.
The European Parliament adopted the MiCA law on April 20, paving the way for final approval by the European Council before the legislation comes into force. The law establishes clear principles and legal requirements for the use of cryptocurrencies and related services and activities across the European Union.
The framework of the law covers many cryptocurrencies, digital assets, valuables and coins. The next step in the long process for MiCA to become EU law requires the publication of the law in the Official Journal of the European Union. MiCA will take effect in one year, which means that the regulation will finally become law in the middle of 2024. The European Commission first proposed MiCA in September 2020, but faced many obstacles and delays during the legislative process.
This regulation was well received by cryptocurrency service providers and developers, as it creates a single market place across Europe in terms of regulatory requirements and operating procedures. Key elements of MiCA legislation include registration and licensing requirements for cryptocurrency providers, exchanges and wallet providers.
Stablecoin providers must meet certain safety and risk mitigation requirements, while cryptocurrency operators must ensure adequate safety and security measures to overcome cyber security and operational failures. The law also provides measures to prevent market abuse, insider trading, and fraudulent practices in the cryptocurrency space.
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