MiCA expected to be approved, with implementation set to begin as early as mid-2024.
According to a report from CoinDesk, bipartisan lawmakers in the European Union expressed support for regulating the EU's crypto asset market during Wednesday's debate, indicating that MiCA is likely to be approved in the vote scheduled for Thursday. If all goes well, it is expected to be implemented as early as mid-2024, potentially making the EU the first major jurisdiction with comprehensive crypto legislation.
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What is MiCA?
The Markets in Crypto Assets (MiCA) is a comprehensive regulatory framework for managing digital assets in the European Union, governing the operation of entities providing crypto asset services within the EU's 27 member states. Prior to MiCA, the EU lacked a unified regulatory framework for cryptocurrencies, besides anti-money laundering regulations. MiCA, if passed, will directly apply across the entire EU, surpassing individual member state legislations.
The regulatory legislative text of MiCA was approved by the European Parliament's Committee on Economic Affairs (ECON) in October last year. It will allow cryptocurrency exchanges and digital wallet companies to offer regulated services across the EU and require stablecoin issuers to hold sufficient reserves.
Major Parties Respond Positively, MiCA Expected to Take Effect Next Year
Spokespersons from the largest parliamentary groups, including the European People's Party, the Socialists and Democrats, Renew Europe, as well as the European Conservatives and Reformists, welcomed the proposals related to MiCA during Wednesday's parliamentary session. Assuming members of these parties vote in favor, the MiCA bill stands a good chance of easily securing the majority votes needed for legislative approval in the near future.
Stefan Berger, the right-wing German legislator leading the council's legal negotiations, stated:
MiCA should "restore trust damaged by the FTX case" and bring stability to the industry. It will position the EU "at the forefront of the token economy."
The MiCA bill is expected to come into effect 12 to 18 months after its publication in the Official Journal of the EU, possibly by June and is anticipated to be implemented as early as mid-2024, potentially making the EU the first major jurisdiction with extensive cryptocurrency legislation.