After a voting procedure on May 16, the Council of the European Union (EU) has granted its ultimate endorsement to the highly anticipated legislation known as Markets in Crypto-Assets (MiCA), paving the way for it to become an officially recognized and standardized law. All 27 Finance Ministers representing the European Union member states voted to implement the MiCA bill, which also involved adjusting various associated regulations and directives.
MiCA Mandates EU Authorization And AML Measures For Crypto
The European Parliament and the European Union member states have approved the Markets in Crypto-Assets (MiCA). As per the regulations outlined in the MiCA, any cryptocurrency business catering to customers located within the bloc must secure authorization from the EU and adhere to safeguards to deter money laundering (AML) and the funding of extremist groups.
In conjunction with the EU parliament’s endorsement of the MiCA, two additional legislative measures – one of the transmissions of fund-related information and another addressing particular crypto-assets – were also sanctioned simultaneously.
EU Council’s New Crypto Law To Establish Harmonized Regulatory Framework
As per the Council’s official statement, the forthcoming crypto law aims to establish a unified regulatory framework within the European Union. This development is seen as an enhancement, considering the international nature of crypto assets, and it represents an advancement from the existing scenario where certain member states rely solely on national legislation.
In a statement, Elisabeth Svantesson, the Chair of the meeting and Sweden’s Minister for Finance said she was “pleased” with the adoption, representing the last stage of the legislative process.
Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism.
The EU Council emphasized its focus on promoting transparency and compliance in the wider crypto market, stating:
The new rules cover issuers of utility tokens, asset referenced tokens and so-called ‘stablecoins’. It also covers service providers such as trading venues and the wallets where crypto-assets are held.
Furthermore, the Council acknowledged that the approval addresses an existing gap in EU legislation by ensuring that the legal framework does not impede the utilization of emerging digital financial instruments. It affirms that these innovations fall under the scope of financial regulation and align with the risk management protocols established within the European Union.
The European Parliament formally approved the MiCA legislation on April 20, paving the way for the Council’s ultimate endorsement. Following this development in the crypto industry,
BTC Price
Following this development in the crypto industry. As of writing, BTC is trading at $27,103, indicating a 0.34% decline within the last hour. This contrasts with a 1.02% decline in the last 24 hours.
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