All European Union member states approved markets in Crypto-Assets (MiCA) legislation on May 16. It is the first complete set of regulations to govern crypto assets.
Firms that want to produce, trade, and secure crypto assets, tokenized assets, and stablecoins inside the 27-nation bloc will need to get a license under the new laws, which are scheduled to go into effect in 2024.
Elisabeth Svantesson, the finance minister of Sweden, which currently holds the EU presidency, said, “Recent events verify the urgent need to put in place rules that will better protect Europeans who have invested in these assets and stop people from using the crypto industry to launder money and fund terrorism.”
Transparency will be bolstered and a complete framework for issuers and service providers, including anti-money laundering compliance, will be established under the MiCA standards.
The goals of the regulatory framework include the safety of investors, the maintenance of financial stability, and the promotion of innovation within the crypto-asset industry, among other things.
Utility tokens, asset-referenced tokens, and stablecoins are only some of the digital assets that fall within the purview of the law.
Services like exchanges and wallets for storing cryptocurrency are also discussed. Notably, the regulations include issues like insider trading, market manipulation, and other forms of abuse common in the Bitcoin industry.
The publication of the bill in the Official Journal of the European Union is the last stage in the process that will make MiCA a law of the European Union. Within a year, MiCA will be fully implemented; by mid-2024, the rules will have been codified into law.
Cryptocurrency service providers and advocates alike have expressed satisfaction with the new law since it standardizes the legal framework and business practices throughout the European Union.
Hester Peirce, a U.S. derivatives regulator CFTC commissioner, has said that nations without comprehensive crypto regulation, including the U.S., are “wandering in the desert a bit,” highlighting the significance of the EU’s first move in this area.
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