The Markets in Crypto Assets Regulation (MiCA), a vital EU law, has been delayed due to technical issues.
According to EU representatives, if FTX had failed, MiCA would have stopped such a collapse.
The delay, according to a spokesperson for the EU Parliament, is "technical" and was probably caused by issues in translating the roughly 400-page document into the union's 24 official languages.
In November 2022, the EU postponed the vote to February 2023. However, they were concerned that the long document would present technical challenges, delaying the licencing regime's scheduled introduction in 2024.
EU representatives said that MiCA would have prevented such a collapse when FTX failed. However, the bill has a serious loophole that permits businesses like FTX to continue serving EU clients without additional oversight.
The roughly 400-page document still needs to receive official approval from lawmakers. Furthermore, the national governments that make up the Governing Council of the EU. The bill, which also establishes reserve requirements for stablecoins, has garnered the general support of European politicians but not yet their formal endorsement. The rule will have an immediate impact on each of the 27 member nations, but national regulators will primarily be in charge of how it is applied and interpreted.
In addition to MiCA, additional requirements have been postponed. The Transfer of Funds Regulation will now be approved at the same April vote session (TFR). Nevertheless, which is meant to be put into practise concurrently with MiCA. The TFR requires that all cryptographic transfers include recipient and receiver know-your-customer information.
Some European states are promoting stronger crypto regulation in front of MiCA. But due to the erratic year in the crypto markets. The mandatory registration of cryptocurrency enterprises in 2023, for instance, is a goal of French lawmakers and central bankers.
