EU Vote On MiCA Regulation
The European Parliament has approved the Markets in crypto-assets (MiCA) regulation. The new rules will apply to all crypto-asset service providers and will be harmonized at EU level.
The European Parliament is set to vote on a new regulation on markets in crypto-assets (MiCA). This landmark legislation is the most sophisticated set of crypto market rules yet, and comes at a time when the United States has yet to establish a concrete belief with a roadmap on crypto regulation. The MiCA regulation is aimed at placing harmonized rules for crypto assets at the EU level, and is designed to provide legal certainty for crypto assets not covered by existing EU legislation. It also has the added benefit of promoting innovation and use of crypto assets and combatting money laundering.
Parliament voted by 517 in favour and 38 against to approve the world’s first comprehensive set of regulations for issuing and trading cryptoassets such as bitcoin cryptocurrency. EU states have already given the nod to the rules, which will be rolled out from mid 2024, requiring firms that issue and trade cryptoassets to be licensed by a national regulator, giving them a ‘passport’ to serve customers across the 27-member country bloc.
The regulation will oblige crypto-asset providers to hold a license, issued by a competent authority of a member state. The license will be valid in all EU member states. To get licensed, a crypto-asset provider will have to comply with common regulatory and supervisory rules. Major service providers will have to disclose their energy consumption, and the international ‘travel rule’ already used in traditional financial transactions will be applied, meaning information on the source and recipient of the cryotoasset will have to accompany and be stored on both sides of the transfer to help combat money laundering.
Overall, the MiCA regulation is set to provide a safe and secure framework for crypto asset trading within the EU. It will promote innovation and use of crypto assets, whilst also providing legal certainty and combatting money laundering.