National representatives at the European Council have taken preliminary steps to regulate crypto assets in the region, after voting on the Cryptocurrency Markets (MiCA) regulation of the European Union (EU) this Wednesday (5).
MiCA proposes to keep issuing cryptocurrencies under the scope of institutional regulation and establishes a first regime for cryptocurrency service providers in member states of the European Union.
The next step towards formal adoption of the legislation will take place on October 10, when the European Parliament’s economic affairs committee will also vote on the proposal.
Then, after translating the text into more than 20 official languages of the European Union, the file must be inserted in the Official Journal of the EU to formalize the application.
European Central Bank prepares
for broad digital currency adoption scenario
Estimates for regulation
MiCA includes an adaptation period of 12 to 18 months to adapt to the new laws. The new laws are estimated to be implemented in early 2024, in the most optimistic scenario.
Although the regulation is generally well accepted in the industry for harmonizing a sometimes fragmented legislative landscape, concerns were raised regarding the limitations established in stablecoins not denominated in euro.
Although the toughest measures have been removed from the regulatory framework of European Unionthey quickly returned to last-minute legislation last Wednesday by French officials, who were concerned about the sovereignty of the euro.
The European institutions reached a political agreement on MiCA in June, and in recent months they have negotiated the technical details of the regulation.
As soon as MiCA is published in the Official Gazette of European Union early next year, more details on how to implement the rules for cryptocurrency service providers will be resolved by European supervisory bodies.
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
