MiCA Is Now Signed Into Law To Create A Clear Legal System For Crypto In The EU

Key Points:

• The EU has finally signed into law its groundbreaking MiCA rule.
• The legislation was signed by Roberta Metsola, President of the European Parliament, and Peter Kullgren, Minister of Rural Affairs of Sweden.
• MiCA will go into effect a few weeks after it is published in the EU’s official journal, which is expected in June.

The important Markets in Crypto Assets (MiCA) proposal seeks to standardize all cryptocurrency legislation throughout the EU’s 27 member states. According to the most recent reports, the European Union officially signed into law its MiCA legislation on Wednesday.

The legislation was signed by European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren, coupled with a second anti-money laundering bill requiring crypto providers to authenticate their clients’ identities before transferring payments.

The council has already given final approval to the MiCA rule. The ground-breaking law attempts to integrate crypto throughout the EU. It was, however, postponed until February. It has now received final clearance.

The announcement was made on Twitter by the Swedish government, which is presiding over legislative discussions as the EU president.

On April 20, the European Parliament passed the European Union’s (EU) MiCA encryption rules. This remarkable move brings Europe one step closer to being the first area to enact comprehensive laws for the booming cryptocurrency industry. The enforcement phase will begin in June 2023 after the fulfillment of a few remaining administrative procedures.

Its regulations, which provide crypto exchanges and wallet providers permission to operate within the 27-nation bloc and require stablecoin issuers to keep enough reserves, will go into effect between 12 and 18 months later.

MiCA was initially suggested by the European Commission in 2020, and it sparked debate when legislators were on the verge of including ecologically friendly requirements that may have amounted to a ban on Bitcoin’s proof-of-work algorithm.

This achievement marks a big step forward in tackling the issues connected with the growing use of digital assets.

Although the rules were widely applauded, the industry’s focus has now shifted to the next stage of EU crypto legislation, with future regulations possibly addressing themes like staking, non-fungible tokens, and decentralized financing. When it is implemented, MiCA will put crypto-asset services and activities within EU regulatory jurisdiction.

The European Banking Authority (EBA) today began a public consultation on proposed changes to its Guidelines on money laundering and terrorist financing (ML/TF) risk factors. This is also seen as a move to strengthen the comprehensive system for digital assets across the EU in the near future.

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Harold

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