The Markets in Crypto Assets law (MiCA) of the European Union was officially published in the Official Journal of the European Union (OJEU) on Friday. This signifies the beginning of the countdown for the implementation of significant licensing regulations for cryptocurrencies.
The complete law, released together with relevant legislation, mandates crypto wallet providers to verify the identity of their customers during fund transfers. It also provides a licensing framework for cryptocurrency companies, including exchanges and wallet providers, to operate within the European Union. Additionally, the law introduces fresh governance and financial obligations for stablecoin issuers.
The legislation faced criticism in its initial stages due to its extensive demands for the collection of sensitive personal data, which has raised concerns about potential privacy infringements. Initially, discussions and voting on MiCA were scheduled for February last year but were subsequently delayed until April. Following standard parliamentary procedures, the ultimate vote on MiCA occurred on April 19 2022.
In October, members of the parliament’s Economic and Monetary Affairs Committee (ECMA) overwhelmingly supported the MiCA legislation with a vote of 28-1. Moreover, national diplomats also gave their endorsement to the plan.
The parliamentary vote, originally planned for the end of 2022, was subsequently rescheduled to February of the following year due to translation-related challenges that emerged in the month of November. The procedural action signifies the enforcement of significant licensing regulations, as well as rules pertaining to stablecoins and anti-money laundering measures by December 2024. The lawsuits claim that the tokens traded on Crypto platforms are classified as regulated financial instruments
The publication of a lengthy legislation indicates the official acceptance of a bill into the European Union’s legal framework. These laws will become effective in 20 days from now, with their provisions being applicable starting from December 30, 2024. However, some specific provisions will come into effect slightly earlier on June 30, 2024.
