European Council approves MiCA marking a major milestone for Europe’s crypto ecosystem

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The European Council finally approved the Markets in Crypto-Assets (MiCA) law on October 5, marking a major step toward unifying the continent’s formerly fragmented legal system. The representatives of the governments of the bloc’s members in the EU Council approved the laws’ text, which is anticipated to take effect in 2024.

What does MiCA aim to achieve?

By establishing the first-ever licensing system for cryptocurrency wallets and exchanges to operate across the 27 member nations of the EU, MiCA will remove the requirement for national implementation laws. Additionally, it intends to set stablecoin reserve standards. Moreover, a new law on funds transfers will be implemented to make it compulsory for crypto-wallet service providers to confirm the names of their customers to combat tax evasion and money laundering.

The MiCA, which was first put forth by the European Commission two years back and was approved by the European Council in 2021, also aims to address parts of the crypto industry that are now exempted from relevant laws.

Notably, the most important EU crypto regulation MiCA was finalized a few months back, as TheCoinRise reported.

The text must first receive official approval from the European Parliament before being translated into the EU’s more than 20 official languages. After that, there will be a 2 to 18-month period of adaptation for the new regulations. The bill’s text is now sealed, but before it takes effect in 2024, it will likely be published in the official journal of the EU.

Despite its massive plans on MiCA’s execution, a recent report from July reveals that EBA lacks crypto experts in its team, which might create hindrance in the implementation process.

It’s the first time ever that politicians have attempted to regulate this asset class on such a large scale. While accepting that the EU cannot address cryptocurrency all on its own, Mairead McGuinness, the EU commissioner for financial services, emphasized the importance of global cooperation and knowledge exchange.

Notably, during next week’s annual meetings of the International Monetary Fund and the World Bank, the EU hopes to discuss the evolution of crypto regulation with US officials in a media roundtable held by Bloomberg News in Brussels.

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