After years of deliberations, the regulatory bill for the crypto industry in Europe, MiCA, has been passed in the European Parliament.
First introduced in 2020, the Markets in Crypto-Assets Act (MiCA) passed a final vote in the European Parliament, as legislators voted to implement the law. It is now waiting for the go-ahead from the European Council, after which it will apply to all crypto firms in the European Union.
While the crypto industry has been awaiting the final regulation for a long time, many individual countries like France have been preparing their own legislation. If the European Council approves, the MiCA will provide a legal framework to all crypto firms and digital asset players in the European Union region.
It would also regulate issuers of digital assets and ensure users are protected from the various risks of the crypto industry through transparency and compliance standards maintained by the crypto firms.
In July 2024, the rules related to stablecoins are expected to be implemented, while those for crypto asset service providers will come into force from January 2025.
Experts have still flagged a few concerns with the bill passed by the European Parliament, including the absence of decentralized finance (DeFi). DeFi has grown by leaps and bounds in the last few years, and the absence of a regulatory regime for the sector may induce issues in the future.
One of the economists of the European Commission, Joachim Schwerin, had earlier defended the bill, saying “We promote the crypto sector and want to support its organic, market-driven development. The many positive opportunities should be recognized and used.”