MiCA Is Giving New Positive Signals For Crypto-Friendly Banks
- With the introduction of the MiCA laws, Europe already has the world’s most cryptocurrency-friendly institutions.
- MiCA has said that one of its goals is to provide financial services for crypto asset service providers.
- It is the world’s first serious step toward industrial control.
MiCA is scheduled to get a final vote from finance ministers next week, and after clearing the crucial vote in the European Parliament, the legislation will come into force, with certain clauses taking effect 12 to 18 months later. This is delivering some good news to the cryptocurrency market.
According to Circle EU Strategy and Policy Director Patrick Hansen, Europe already boasts the world’s most cryptocurrency-friendly banks. With the implementation of the Markets in Crypto Assets (MiCA) rules, this worldwide leadership may expand.
One of MiCA’s declared aims, according to Hansen, is to enable financial services for crypto asset service providers.
During the last several months, the European crypto sector has seen an infusion of venture capital money, which executives attribute to the European Union’s groundbreaking crypto law.
MiCA is a European Union regulation that is expected to become law in July 2023, with some of its provisions taking effect in July 2024 and others in January 2025. It is part of a larger digital finance package developed inside the EU and has been regarded as the most important crypto-specific law in the world.
The law attempts to govern crypto assets and those who trade them, whether they are individuals or businesses. As a result, it is the first significant move toward industrial regulation anywhere in the world.
Several executives in the cryptocurrency companies have expressed support for the move on Twitter, with some hopeful that other countries would follow the EU’s lead and enact similar legislation.
MiCA applies to any person or business involved in the application, offer to the public, and admission to trading of crypto-assets, or that provides services linked to crypto-assets in the Union, according to the most current accessible version of the legislation.
Crypto assets are described as a digital representation of a value or right that may be exchanged and maintained electronically using distributed ledger technology or equivalent technologies. They are then classified into one of three groups.
MiCA will, among other things, require all stablecoin issuers operating inside the EU to have a license and appropriate reserves.
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