The European Union has officially approved the Crypto Asset Markets (MiCA) regulation, the first and only legislation of its kind in the world regulating the delivery and provision of services related to cryptoassets and stablecoins.
The regulation was approved by the EU Parliament on 20 April 2023 and will become law in 2024. The regulation was signed on 31 May 2023 by Peter Kullgren, Swedish Minister for Financial Markets and Consumer Affairs, and Roberta Metsola, President of the European Parliament.
The signing ceremony was announced on Twitter by the Swedish government, which presided over the legislative talks since it holds the rotating EU presidency.
Facilitated trade for Ukrainian products, and stronger rules to prevent financial crime through crypto-assets – this will
be the effect of two of the new EU laws negotiated under #EU2023SE.Signed by @peterkullgren and @EP_President today, they now enter into force. pic.twitter.com/RdzE7hvrYE
— Swedish Presidency of the Council of the EU (@sweden2023eu) May 31, 2023
According to the tweet, the new regulation will have two main effects: "Stronger rules to facilitate the trade of products of Ukrainian origin and to prevent financial crime through cryptoassets".
The first refers to the Deep and Comprehensive Free Trade Area (DCFTA) agreement between the EU and Ukraine, which will be extended to include crypto assets. The second is the anti-money laundering (AML) and counter-terrorist financing (CTF) requirements that will apply to all crypto-asset service providers operating in the EU.
The MiCA regulation is expected to create a harmonious and competitive market for Bitcoin and cryptocurrency assets in the EU, as well as foster consumer confidence and faith in this emerging industry.
*Not investment advice.
