National representatives in the European Council made preliminary strides to regulate crypto in the region, as they voted through the European Union's Markets in Crypto-Assets (MiCA) regulation on Wednesday.
MiCA sets out to bring the issuance of cryptocurrencies under the wing of institutional regulation, and establishes a first-time regime for crypto-asset service providers across the EU’s member states.
The next step towards formal adoption of the legislation comes on Oct. 10, when the European Parliament's economic affairs committee will also vote on the proposal.
Then, after translating the text into the EU’s more than 20 official languages, the file is projected to be adopted into the EU’s Official Journal to formalize its enforcement. MiCA includes a 12-18 month adaptation period to prepare for the new laws set in place. We can expect the laws to be in place at the start of 2024 at the earliest.
While the regulation is generally welcomed by the industry for harmonizing an otherwise fragmented legislative landscape on the continent, concerns were raised on the limitations set on non-euro denominated stablecoins.
While the harsh measures were removed, they swiftly made their way back into the legislation last Wednesday in a last-minute move by French officials who were worried for the euro’s sovereignty.
The European institutions reached a political agreement on MiCA back in June, and over the summer they negotiated the technical details of the regulation. Once MiCA reached the EU’s official journal early next year, further details on how to implement the rules for crypto-asset service providers will be ironed out by the European supervisory bodies.
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