The Markets in Crypto-Assets, or MiCA, framework is being used by representatives from a committee of the European Council to regulate digital assets in the European Union. The finalised text has been sent to parliament for a vote.
The Markets in Crypto-Assets, or MiCA, framework is being used by representatives from a committee of the European Council to regulate digital assets in the European Union. The finalised text has been sent to parliament for a vote.
The MiCA document was accepted by the Permanent Representatives Committee of the European Council and delivered to the head of the Economic and Monetary Affairs Committee of the European Parliament, according to an information note from October 5. The crypto framework proposal would be implemented "should the European Parliament adopt its stance at first reading," according to Edita Hrdá, chair of the Permanent Representatives Committee.
To establish a uniform regulatory framework for cryptocurrencies among the member states of the European Union, the MiCA proposal was originally presented to the European Commission in September 2020. If the language is approved by the parliamentary committee, the policies could start to take effect in 2024. The following committee meeting is set for October 10.
The most recent MiCA text stated that it is crucial to make sure that the [European] Union's financial services legislation is appropriate for the digital age and contributes to an economy that is prepared for the future and works for the people, including by enabling the use of cutting-edge technologies. Lack of a comprehensive Union framework for cryptocurrencies can cause users to lose faith in such assets, which could seriously impede the growth of a market for those assets.
Since the implementation of MiCA, policymakers in the EU's Parliament, Commission, and Council have considered the consequences of standardising crypto legislation throughout their 27 member states, but progress has been slowed by discussions about proof-of-work mining and stablecoins. In September, Binance CEO Changpeng Zhao predicted that the rule "will become a global regulatory standard imitated around the world" at Binance Blockchain Week.
