- The European Union’s Markets in Crypto Assets (MiCA) law, published in the Official Journal of the European Union, marks the beginning of a new era of comprehensive crypto licensing rules.
- MiCA introduces stringent requirements for crypto wallet providers to verify customer identities, sets up licenses for crypto companies to operate across the EU, and lays down new standards for stablecoin issuers.
The European Union (EU) has initiated a new era in digital asset regulation with the official publication of the Markets in Crypto Assets (MiCA) law in the Official Journal of the European Union (OJEU). The announcement signals the start of a countdown toward the implementation of groundbreaking rules concerning crypto licensing.
The MiCA law, published along with related legislation, ushers in a new wave of regulations for the crypto space. It obliges crypto wallet providers to authenticate their customers during funds transfers. Furthermore, it introduces a license that enables crypto entities, including exchanges and wallet providers, to operate seamlessly across the EU. The law also sets forth new financial and governance requisites for stablecoin issuers.
These advancements occur amidst a backdrop of escalating regulatory uncertainty for crypto operations in the U.S., as the Securities and Exchange Commission (SEC) commences legal action against major players like Binance and Coinbase, asserting that tokens traded on their platforms are regulated financial instruments.
The publication of MiCA, which spans over 200 pages of legal text, represents the official adoption of the bill into the EU’s legislative canon. From a legal perspective, the two laws come into force in 20 days, with most provisions applicable from December 30, 2024. However, specific provisions will take effect earlier, on June 30, 2024.
The political framework for both laws was established last June. Nevertheless, their formal agreement encountered several delays due to the intricate process of translating the final text into the multitude of official languages used in the EU. This development sets the stage for a robust, well-regulated crypto environment within the European Union, setting a precedent for regulatory bodies worldwide.