The European Parliament’s landmark Crypto-Asset Markets Regulation Act (MiCA) paved the way for Europe-wide cryptocurrency regulation and made the EU the first major jurisdiction to fully introduce a crypto-asset regulatory framework, ahead of the UK and US.
EU lawmakers passed the bill on April 4 by 20 votes in favor, 517 against and 38 abstentions, heralding the coming of the era when the crypto asset market is uniformly regulated in Europe. Since MiCA is a Regulation in the EU legislative hierarchy and has direct legal effect on EU member states, it will replace all regulatory provisions for crypto assets within EU member states.
The vote follows Wednesday’s debate, in which EU lawmakers advocated for the introduction of licensing for wallet providers and exchanges, and required stablecoin issuers to maintain ample reserves.
Effective 2024 at the earliest
The Crypto Asset Market Regulation Act (MiCA) was first proposed by the European Commission in 2020, and although it has now been passed by the European Parliament, it must still be approved by the European Council before it can officially become EU law.
The main provisions of the bill will be published in the Official Journal of the European Union, and the provisions for stablecoins will enter into force by July 2024 at the earliest, while other regulations will not be on the road until January 7.
In a Twitter post, EU Financial Stability Commissioner Mairead McGuinness described MiCA as the world’s first comprehensive regulatory framework for crypto assets. She said
The European Parliament’s landmark Crypto-Asset Markets Regulation Act (MiCA) paved the way for Europe-wide cryptocurrency regulation and made the EU the first major jurisdiction to fully introduce a crypto-asset regulatory framework, ahead of the UK and US.
EU lawmakers passed the bill on April 4 by 20 votes in favor, 517 against and 38 abstentions, heralding the coming of the era when the crypto asset market is uniformly regulated in Europe. Since MiCA is a Regulation in the EU legislative hierarchy and has direct legal effect on EU member states, it will replace all regulatory provisions for crypto assets within EU member states.
The vote follows Wednesday’s debate, in which EU lawmakers advocated for the introduction of licensing for wallet providers and exchanges, and required stablecoin issuers to maintain ample reserves.
Effective 2024 at the earliest
The Crypto Asset Market Regulation Act (MiCA) was first proposed by the European Commission in 2020, and although it has now been passed by the European Parliament, it must still be approved by the European Council before it can officially become EU law.
The main provisions of the bill will be published in the Official Journal of the European Union, and the provisions for stablecoins will enter into force by July 2024 at the earliest, while other regulations will not be on the road until January 7.
In a Twitter post, EU Financial Stability Commissioner Mairead McGuinness described MiCA as the world’s first comprehensive regulatory framework for crypto assets. She said
In a statement released by the European Parliament, Stetfan Berger, the lawmaker who led the negotiation of the law, said the rules would put the EU at the forefront of the token economy. He noted:
Regulatory clarity on the crypto asset industry in Europe is non-existent in countries such as the US, and industries damaged by the FTX crash can now regain trust.
Regulatory clarity on the crypto asset industry in Europe is non-existent in countries such as the US, and industries damaged by the FTX crash can now regain trust.
