MiCA, the EU’s specific framework for cryptocurrency asset regulation, which has been worked on for nearly three years, will be put to a final official vote today.
European Union to Hold Final Vote on MiCA to Regulate Cryptocurrencies
According to estimates, MiCA will most likely be approved. Voting is expected to take place between 10:00AM and 12:00AM UTC time.
Provisionally passed by the Parliament and Council negotiators in June 2022, the law aims to ensure that crypto transfers, like all other financial transactions, can be traced at all times and suspicious transactions can be blocked.
MiCA aims to regulate crypto assets. It seeks to prevent market abuse as well as address risks related to consumer protection, market integrity and financial stability.
If MiCA is approved today, the rules will take effect in July. Individual states have up to 18 months to implement MiCA.
The regulation will be implemented in stages. The provisions regarding stablecoins will be effective from July 2024, and the provisions regarding crypto-asset service providers will be effective from July 2025.
MiCA includes private stablecoins, fiat-backed stablecoins, and tokens like Bitcoin or ETH. Stablecoin providers will have to maintain a reserve asset backing their tokens.
Crypto asset service providers such as exchanges, trading platforms, custodian wallets, and advisory services will have to provide detailed information about the services they offer.
Under MiCA’s passport regime, crypto-asset providers only need to register in one of the EU’s member states to enjoy access to markets across the entire EU27.
MiCA does not cover NFTs or decentralized finance (DeFi). EU lawmakers are currently working on updates to MiCA to cover these markets.
“We are ahead of many other countries,” said Mairead McGuinness, Member of the European Commission for financial stability, financial services and the Capital Markets Association, in terms of cryptocurrency regulations, during a debate in parliament.
*Not investment advice.