The European Union (EU) lawmakers have passed the Markets in Crypto Assets Regulation (MiCA) bill, a landmark piece of legislation aimed at regulating the digital asset market. The members voted 28 to 1 in favor of the landmark new crypto laws. The bill will pass onto the European Parliament for a final vote in the next parliament session. The laws will come into effect in 2024.
Key Takeaways
- Lawmakers from the European Union have nearly unanimously voted to pass the MiCA bill.
- The bill will pass onto the European Parliament for a final vote in the next parliament session.
- MiCA covers several aspects of the crypto market, including stablecoins, consumer protection, and the prevention of money laundering.
MiCA Gets Approval
The European Council approved the bill last week. It focuses on several aspects, such as the prevention of money laundering, consumer protection, the accountability of crypto companies, the environmental impact of the industry, and stablecoins.
The bill will still have to be voted on by the European Parliament in the next session, but this is expected to happen before the year ends. Once approved, the bill will become law between 12 and 18 months from the vote.
Dr. Stefan Berger, a member of the Committee on Economic & Monetary Affairs (ECON), celebrated the development on Twitter. The crypto community, on the other hand, is a little more cagey about the bill, though no intense discussions have taken place in the wake of the news.
MiCA Set To Change Crypto Market
The MiCA regulations have a strong set of laws targeting the crypto market. It has been heavily discussed this year, facing both praise and criticism. The crypto industry has generally been welcoming of regulation, believing that it will add an air of legitimacy to the market and attract on-the-fence investors.
On the other hand, industry insiders have been wary of some specific details in regulations, such as the ability to identify users from their transactions. They fear that this is a violation of privacy, and this particular point has been a thorn in the crypto industry’s side.
Specifically, the bill covers the definition of crypto assets and calls a token significant if it has more than 2 million users, a market cap or reserve assets exceeding 1 billion euros, at least 500,000 transactions per day, and is operational in seven EU member countries.
EU Turning Attention to the DeFi Market
The European Union Commission is also looking to supervise the decentralized market (DeFi) market more closely. The authority said that it wanted to consider embedded supervision of the niche.
The effort would involve a pilot that uses built-in technology to monitor the DeFi market. It indicates that the EU is not done as far as crypto regulations are considered.
The Bottom Line
The EU’s decision to take the MiCA bill to the last stage of voting signals its intent to regulate the crypto market. There may be more regulation on the horizon as it puts the DeFi under the microscope next. The bill could prompt other countries, such as India and the UK, which have been working on crypto regulation for a long time.