EU starts countdown to crypto legislation, adds MiCA to official journal
MiCA, which comes into effect by the end of 2024, aims to create a consistent regulatory framework for crypto assets among European Union member states.
Publication of the European Union’s crypto law MiCA in its official journal signals the start of the official process of bringing licencing, stablecoin and anti-money laundering regulations into effect by the end of 2024.
The European Union’s Markets in Crypto Assets (MiCA) legislation was published June 9 in the Official Journal of the European Union (OJEU). This move triggers the countdown for the law to come into effect from December 30, 2024.
The Bill was signed into law on May 31, after having first been introduced in 2020, with the aim of creating a consistent regulatory framework for crypto assets among European Union member states.
While the rules officially come into force within 20 days, the rules will begin to apply on December 30, 2024, with some parts of the legislation coming effect six months earlier, on June 30, 2024.
The legislation has been hailed by cryptocurrency service providers and proponents alike, for creating a single market environment across Europe in terms of regulatory requirements and operating procedures.
Key components of MiCA legislation include registration and authorization requirements for issuers of cryptocurrencies, exchanges and wallet providers.
Related: EU to use blockchain for educational and professional credential verification
As per the rules, stablecoin issuers must meet certain security and risk mitigation requirements, while cryptocurrency custody services must ensure sufficient security and safety measures to address potential cybersecurity and operational failures.
The legislation also provides a framework to prevent market abuse, insider trading and manipulative behavior in the cryptocurrency space.
In the meantime, crypto markets and operators in the United States are coming under pressure after the Securities and Exchange Commission initiated regulatory action against exchanges Binance and Coinbase.
Both exchanges are being sued on multiple counts, including failure to register as licensed brokers and offering unregistered securities.
CT Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?
