EU officials have signed the Markets in Crypto-Assets (MiCA) bill into law following final approval from finance ministers
On May 31, Sweden’s minister for rural affairs, Peter Kullgren, and European Parliament President Roberta Metsola finally signed the long-anticipated EU cryptocurrency regulatory framework Markets in Crypto-Assets (MiCA) into law.
The historic legislative milestone took place roughly three years after the European Commission first introduced the measure, which aims to create a consistent regulatory framework for the functioning of crypto assets across the EU member states. The bill’s approval has been continuously postponed, as lawmakers couldn’t agree on various aspects of the proposed legislation.
However, in late April, the European Parliament voted to approve the new crypto licensing regime. This universal regulatory framework obliges crypto-related companies operating in the EU area to obtain a license, as well as comply with strict AML and CFT rules. Another norm stipulated by the rules is the obligation of crypto companies to disclose information about the volume of their energy consumption.
Following the signing ceremony, the framework is expected to go into effect within 20 days after it undergoes official publication in the Official Journal of the European Union (which is to happen “shortly”). At the same time, the virtual asset providers will have some time left for transition to compliance with the new rules, as many of MiCA’s regulations on crypto firms would likely start sometime in 2024.
The deadline for MiCA practical application is shorter for stablecoins (& stablecoin issuers) – 12 months, while other crypto-assets and crypto service providers will get up to 18 months until the requirements become an obligation.
It was previously reported that crypto firms already registered in France, such as Binance or Bitstamp, may be subject to “possible fast-track modular licensing” provided by French Financial Markets Authority.
