The Council of Economic and Financial Affairs gave in European Union EU (which includes finance ministers from all member states), the green light for the Crypto Assets Act Mica MiCAafter the vote on May 16.
Also read: The European Union is pressing for stricter rules on anonymous cryptocurrency transfers
Finance ministers from 27 member states voted in favor of the bill Mica MiCAIn addition to amendments to many regulations and directives related to the new law.
The European Parliament also passed two other pieces of legislation, including regulations on information associated with money transfers and certain crypto assets, in conjunction with the adoption of the new law.
It is worth noting that the European Parliament had adopted a law Mica MiCA Officially on April 20, paving the way for final approval by the European Council, before the regulatory standards come into force.
The new law will set clear regulatory guidelines and requirements for the use of cryptocurrencies and related services and activities across the EU, as well as covering a range of cryptocurrencies, digital assets, utility tokens and stablecoins.
The next step requires converting a law Mica MiCA To EU law, publish it in the Union’s Official Journal, and it will enter into force within a year, which means the regulations will finally become law in 2024.
The European Commission has proposed a law mica For the first time in September 2020, it faced many obstacles and delays on its way through the legislative process.
The law has been widely welcomed, by cryptocurrency service providers and supporters alike, as it creates a single market environment across Europe, in terms of regulatory requirements and operating procedures.
In a related context, it included the main components of the law micaRegistration and licensing requirements for cryptocurrency issuers, exchanges, and wallet providers.
Stablecoin issuers must meet certain security requirements and mitigate risks, while cryptocurrency custody services must ensure adequate security measures to address potential cybersecurity operational failures.
Also read: EU: Capital rules for banks holding cryptocurrency win support
In addition, the law also provides a framework to prevent market abuse, insider trading, and manipulative behavior in the cryptocurrency space.