Following a voting process on May 16, members of the Council of the European Union have given the much-anticipated Markets in Crypto-Assets (MiCA) legislation their final approval, thus allowing it to become a standardized law. With 27 Finance Ministers representing the EU’s member states voting in favor, the MiCA bill is set to modify numerous rules and directives associated with the new law.
The primary aim of the MiCA, which has already been embraced by the EU’s member states and European parliament, is to require cryptocurrency businesses to obtain authorization from the EU in order to serve consumers within the bloc. Additionally, these businesses must also comply with protections designed to prevent money laundering (AML) and the financing of extremist organizations.
Aligning with the ratification of MiCA by the European parliament, two further pieces of legislation, including rules on information accompanying transfers of funds and specific crypto-assets were also approved simultaneously. According to the official statement from the Council, the new crypto law is set to introduce a “harmonized regulatory framework” across the European Union. This improvement is expected to address the current situation, with national legislation and regulations remaining limited to some member states.
The EU Council expressed its belief that the new rules will bring about greater transparency and compliance within the broader crypto market. Covering issuers of utility tokens, asset-referenced tokens, and so-called ‘stablecoins’, the regulations will also encompass service providers such as trading venues and wallets storing crypto-assets.
Furthermore, the Council noted that the approval fills a void in existing EU law, ensuring that the legal framework does not obstruct the use of new digital financial instruments. Innovations under the MiCA regime will fall within the jurisdiction of financial regulation and risk management protocols set forth by the EU.
The formal adoption of the MiCA legislation by the European Parliament on April 20 laid the groundwork for the Council’s final approval. Amidst this crypto news, Bitcoin is currently trading at $27,096, experiencing a 0.41% decline over the past hour compared to a 1.04% drop in the preceding 24 hours.
While the MiCA legislation holds the potential to advance the crypto industry within the EU and address existing legal gaps, it is crucial for investors to conduct thorough market research before investing in cryptocurrencies, as the presented content may be subject to market conditions and reflect personal opinions.
Source: Coingape
