- The European Union has officially signed the Markets in Crypto Assets (MiCA) regulation into law, making strides toward becoming the first major jurisdiction with customized rules for the crypto sector.
- Along with MiCA, an anti-money laundering law requiring crypto providers to verify customer identities during fund transfers has also been passed.
In a groundbreaking move, the European Union has officially ratified the Markets in Crypto Assets (MiCA) regulation, marking a significant milestone towards becoming the world’s first major jurisdiction with customized laws for the cryptocurrency industry. This landmark legislation, combined with a separate anti-money laundering law targeting crypto transactions, signifies a new era of governance in the burgeoning blockchain sector.
ADA, MATIC, SOL, ALGO all securities according to the SEC. We know what is coming for these coins…#IOTA is not a security. Going from Quantum-Proof to SEC-Proof. Can’t touch this 🦍🚀.
— IOTAPoet ✨ (@IotaPoet) June 5, 2023
The momentous legislation was formally signed by European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren. The Swedish government, currently chairing legislative discussions during its EU presidency, announced this landmark decision on Twitter. The new laws, confirmed by a parliament spokesperson to CoinDesk, encompass MiCA, rules on fund transfers, and two separate regulations focused on trade with Ukraine.
Following its official publication in the EU’s journal in the coming weeks, likely in June, the MiCA law will take effect. The law offers cryptocurrency exchanges and wallet providers a license to operate across the EU’s 27-nation bloc, and also mandates stablecoin issuers to maintain appropriate reserves. These provisions will become operative within a time frame of 12 to 18 months.
Initially proposed by the European Commission in 2020, MiCA sparked controversy when lawmakers almost included environmentally-focused provisions that could have effectively banned Bitcoin’s proof-of-work technology. Despite this, the industry largely welcomed the provisions, demonstrating a readiness to adhere to governance in the interest of market stability and investor protection.
As the EU prepares for the enforcement of these novel regulations, attention has pivoted towards the future of crypto regulation within the bloc. Upcoming legislation could potentially extend to a broader range of crypto-assets and activities, such as staking, non-fungible tokens, and decentralized finance, further shaping the landscape of blockchain regulation in the EU.
