MiCA Finally Arrives in the EU
Approximately three years after the European Commission proposed the legislation, Sweden’s minister for rural affairs, Peter Kullgren, and the president of the European Parliament, Roberta Metsola, inked the long-awaited crypto legal framework into legislation on May 31.
Three Years into Making
Before receiving ultimate approval in 2023, legislators in the EU had passed the MiCA framework from parliament to the legislative body while debating various components of the measure. Through MiCA, the EU member states will have a uniform regulatory structure for crypto assets.
The framework is anticipated to take effect after the ceremony of signing and be published in the EU Official Journal. Many of the MiCA’s rules on cryptocurrency enterprises are anticipated to commence around 2024.
Suggestions for a “MiCA II” Draft
Given that MiCA started out in 2020, some EU MPs have argued that a more comprehensive structure was required in the months following the events of the 2022 crypto market crisis and high-profile failures like FTX, BlockFi, and Celsius.
Christine Lagarde, president of the European Central Bank, has suggested a “MiCA II” that builds on the achievements of the original framework.
In an interview with The Block in November last year, MEP Ondrej Kovarik stated that MiCA would not have totally averted or avoided the repercussions, despite improving transparency and investor protection standards.
Crypto Firms Eye European Market
Meanwhile, a number of businesses are looking to expand into Europe. Gemini, the Winklevoss Twins’ exchange platform, has decided to base its European operations in Dublin, Ireland, as reported by TheCoinRise.
Gemini anticipates expanding its staff after the EU approved the new Markets in Crypto-Assets rules (MiCA), which went into effect on May 16. Additionally, the Berlin-based neobank N26 has increased the number of branches in five European nations: Germany, Ireland, Switzerland, Belgium, and Portugal.