The landmark Markets in Crypto Assets (MiCA) received the final greenlight from the Economic and Financial Affairs Council of the European Union in a unanimous vote on May 16. MiCA passed the final parliamentary voting on April 20.
The council made up of finance ministers from all 27 member states adopted the regulation with no objection. The council also adopted two more legislations, including one on the regulation of information accompanying transfers of funds and certain crypto assets.
Stefan Berger, member of the European Parliament, said:
“With the final vote on the MiCA regulation, we put the European Union at the forefront of the crypto industry…Trust was damaged by cases like FTX, and through this balanced regulatory framework, we are creating stability in a young industry. “
The MiCA regulations now need to be published in the Official Journal of the European Union before it can become EU law. The law is expected to come into effect by mid-2024.
MiCA will enforce uniform regulation for a range of cryptocurrencies, utility tokens, asset-based tokens, and stablecoins. The law will also require issuers of cryptocurrencies, exchanges, and wallet providers to seek registration and authorization and comply with anti-money laundering laws.
The law will also oversee stablecoin issuers, who would be required to meet certain security and risk mitigation requirements and ensure they have enough cash to back up their assets. And crypto custody services will need to ensure they have enough cyber security measures to protect themselves against potential threats.
Elisabeth Svantesson, Minister for Finance of Sweden, noted in a statement that MiCA will “protect investors by increasing transparency.” She added:
“Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism.”