The European Parliament voted almost unanimously in favor of the MiCA (Market in crypto assets) regulation, which still has to pass through the hands of the European Council before its final adoption. The European Union thus becomes the first area in the world to lay the groundwork for regulations dedicated to large-scale cryptocurrencies.
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The European Parliament largely in favor of the MiCA regulation
Today, Thursday April 20, the European Parliament has come out in favor of the introduction of the MiCA regulation (Market in crypto assets), thus opening the doors to the first regulation dedicated to crypto-assets on such a large scale.
The text, the first lines of which were written in 2020, still needs to be approved by the European Council before being published in the Official Journal of the European Union (OJEU). Once on track, the MiCA regulation should come into force next Julyand the specific provisions for certain verticals – in particular stablecoins – will have to apply from July 2024.
Broadly speaking, the MiCA regulation will require companies operating in the cryptocurrency sector to register in at least one of the member states in order to offer their activities throughout the European Union. A guarantee of security, therefore, which should allow the companies concerned to considerably reduce their administrative processes.
It will then be up to the European Securities and Markets Authority and the European Banking Authority to ensure compliance with the rules thus put in place.
European Commissioner for Financial Services, Mairead McGuinnessrecalled the validity of such rules following the collapse of major players in the ecosystem, in particular during the year 2022:
“And as we have seen in recent months, strict rules and supervision are absolutely necessary. Indeed, projects such as FTX, Terra Luna, Celsius and Voyager have collapsed. We have seen many retail investors, lured by false promises or false hopes, lose huge sums of money. »
👉 To go further – MiCA and MiFID 2: what are the differences between these two European regulations?
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The European Union places its pawns for the crypto market
Although the MiCA regulations, in their current state, still need to be fine-tuned due to a rapidly changing industry, the contrast remains clear between the euro zone and the United Stateswhere companies in the crypto world operate in constant legal limbo.
A blur such as Gary Gensler, Chairman of the Securities and Exchange Commission (SEC) of the United States, recently found himself in a particularly embarrassing situation where, questioned before the Financial Services Committee, he showed himself completely unable to decide on the status of Ether (ETH), thus demonstrating the paradoxes of the federal body.
Thus, with the regulatory context for cryptocurrencies clearly on the way to becoming more understandable within the European Union, it is a safe bet that an increasing number of companies will begin to migrate to European lands.
However, certain provisions should be considered, in particular the famous “Travel Rule”, which provides for the monitoring of transactions over €1,000 made between a self-hosted wallet and a crypto service provider.
👉 Also read – Nearly 1 in 10 French people own crypto-assets in 2023
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Source: Bloomberg
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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