May 16, 2023 05:05
The Council
of the European Union has adopted the Markets in Crypto-Assets (MiCA)
regulation passed by the European Parliament late last month. The Council has
set “an EU level legal framework for this sector for the first time,” the legislative body said in a
statement.
The Council has just adopted the first-ever EU rules on markets in crypto-assets and services. The new regulation aims to improve transparency, preserve financial stability and increase consumer protection while fostering innovation. #DigitalFinanceEU#MiCA
— EU Council (@EUCouncil)
May 16, 2023EU Council
Stamps MiCA
Finance
Magnates reported that the Parliament, one of the two legislative bodies of the
European Union alongside the Council, overwhelmingly
supported the
passage of the law. The lawmakers on April 20th voted 517-38, in favour of and
against the rules (with 18 abstentions), thereby making Europe the first major
jurisdiction to introduce a comprehensive law to regulate the crypto
industry.
Additionally, the
legislators voted massively in
favour of a separate law known as the Transfer of Funds Regulation, which
is a rule that requires digital asset operators to identify their customers in
order to prevent money laundering.
“I am very
pleased that today we are delivering on our promise to start regulating the
crypto-assets sector,” said Elisabeth Svantesson, the Minister for Finance of
Sweden. “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,” she further explained.
MiCA
Eyes 2024 Take Off
MiCA as the
world’s first comprehensive crypto law seeks to protect European consumers,
enshrine environmental sustainability and prevent money laundering in the
crypto industry. This requires digital asset exchanges and crypto wallet
providers to obtain a license to operate within any country in the region. In addition, the
regulation demands that stablecoin issuers hold sufficient reserves.
#MiCA requires #ESMA to draft a substantial package of implementing measures that must be developed ahead of its application.?? ESMA is preparing these measures together with NCAs, #ESAs and @ecb. We will announce in due time our approach to consult external stakeholders. pic.twitter.com/ZTVnRkmFCu
— ESMA - EU Securities Markets Regulator ???? (@ESMAComms)
May 16, 2023The
regulation was first presented before the legislative bodies in September 2020
by the European Commission. The law is a part of the larger EU digital finance
package, which is a set of legislative proposals and initiatives adopted by the Commission in 2020. The initiatives seek to support innovation and the
use of new financial technologies while also ensuring customer and investor
protection.
After
adopting its mandate on MiCA in November 2020, the Council reached
provisional agreements with the Parliament on rules for the law in June last
year. In recent months, the EU twice postponed the vote on the much-awaited
crypto rules due to technical delays in translating the regulation into the 24
languages of the political bloc.
“Today’s
formal adoption of the regulation is the final step in the legislative
process,” the Council said in the statement, noting that: “MiCA will protect
investors by increasing transparency and putting in place a comprehensive
framework for issuers and service providers including compliance with the
anti-money laundering rules.”
MiCA is
expected to go live sometime in 2024.
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This article was written by Solomon Oladipupo at www.financemagnates.com.
World Crypto Global
