The MiCA (Markets in Crypto-Assets) regulation aims in particular to create a regulatory framework for crypto markets. It also aims to protect consumers from the risks associated with the use of digital assets. The European Council has just adopted the full text of this regulation after several months of talks. He also approved another law. Find out what it is.
Approval of MiCA Regulation and other law
The MiCA regulation appears as a historic law on cryptos. European diplomats recently approved the texts of this regulation. The approval of MiCA regulations by the EU took place on Wednesday during a meeting. On this occasion, the EU endorsed another law on fund transfers. According to this law, wallet providers must check identity of their customers. This measure should reduce the risk of money laundering.
Diplomats therefore agreed on Wednesday to authorize crypto businesses and deploy a transaction monitoring system. It appears that they affixed their signature at the bottom of the legal texts without any other form of trial. It should be remembered that these bills had been the subject of a conclusion of political agreements in June. Lawmakers have since tried, time and time again, to turn their political agreements into a final piece of legislation.
According to the MiCA regulations, wallets and crypto exchanges must have a specific license before carrying out operations. With this law, it will also be mandatory for stablecoin projects to have a reserve. This measure aims to avoid Terra-type collapses. Nevertheless, for crypto industry lobbyists, the MiCA regulation could limit trading in US dollar-backed stablecoins.
Now, the MiCA regulation awaits official approval from lawmakers in the European Parliament. Moreover, the publication of the text of the law in the official journal of the EU is planned for next year. The regulation may take effect in 2024.
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