The European Union’s regulation of the crypto asset market (MiCA) has been adopted by the Council of the European Union. MiCA will be examined next week by the Parliament for implementation in 2024, at the earliest.
The new bill, whose full name is Markets in Crypto-Assets (MiCA), was approved by the European Council. This is another step for Europe in implementing new rules for digital asset markets and their players. At the end of September, the text of MiCA, which has been under development since the end of June and a provisional agreement, was published in a finalized version.
The final version of MiCa is now available to all, and in particular to the crypto industry. The latter will be able to take note of the various terms and obligations applying to their operations.
MiCA text will be examined and voted next week
Indeed, the bill aims to regulate all activities related to cryptocurrencies, including their issuance if it takes place in the European Union. It also provides for much stricter oversight of companies defined as “crypto-asset service providers“.
Digital asset service providers (PSAN and others) registered with an EU regulator will have an additional 18 months to comply. This information has not escaped the attention of some companies that have been registering at a rapid pace recently, particularly in Italy.
As for MiCA, it has yet to complete its legislative process. The text will be examined and voted on by the European Parliament next week. Once this stage is completed, it can be published in the Official Journal. In principle, this should happen at the beginning of 2023.
The MiCA regulation includes the consideration of :
- non-fungible tokens (NFTs) as financial assets (under certain conditions),
- the total prohibition for companies to remunerate their customers with stablecoin lending,
- the inclusion of algorithmic stablecoins in the regulation, and more.
It should be noted that MiCA was not the only regulatory measure examined and voted by the European Council. The Council also approved new measures. These apply to crypto money transfers.