The landmark Markets in Crypto Assets (MiCA) received the final green light from the Economic and Financial Affairs Council of the European Union on May 16 by unanimous vote. MiCA passed the final parliamentary vote on April 20.
The council, made up of the finance ministers of all 27 member states, approved the regulation without objection. The council also passed two more pieces of legislation, including one on the regulation of information in money transfers and certain crypto-assets.
Stefan Berger, Member of the European Parliament, said:
“With the final vote on the MiCA regulation, we have put the European Union at the forefront of the crypto industry… Confidence has been damaged by things like FTX, and through this balanced regulatory framework we are creating stability in a young industry. “
The MiCA regulations must now be published in the Official Journal of the European Union before it can become EU law. The law is expected to enter into force in mid-2024.
MiCA will enforce unified regulation across a range of cryptocurrencies, utility tokens, asset-based tokens, and stablecoins. The law also requires crypto issuers, exchanges and wallet providers to apply for registration and authorization and comply with anti-money laundering laws.
The law will also oversee stablecoin issuers, who would be required to meet certain security and risk mitigation requirements and ensure they have sufficient cash to back their assets. And crypto custody services will need to ensure they have adequate cybersecurity measures in place to protect themselves from potential threats.
Sweden’s Finance Minister Elisabeth Svantesson noted in a statement that MiCA will “protect investors by increasing transparency”. She added:
“Recent events have confirmed the urgent need to enforce regulations that will better protect Europeans who have invested in these assets and prevent the misuse of the crypto industry for money laundering and terrorist financing.”
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