The European MiCA Regulation is a series of digital asset regulations. Within its scope, we find all cryptos that have not yet been regulated. To this effect, CBDCs and other types of assets are not affected by this regulation. That said, the MiCA regulation aims to ensure a solid legal framework for crypto markets in Europe. The idea is to promote the development of cryptocurrencies while protecting market players against the risks associated with the new industry. While we were preparing for the home stretch before the effective application of the new regulations, we learn that there is a postponement of the final vote.
The final vote will take place in 3 months
The Block reported in a article that the final vote, before the application of the MiCA regulations, was postponed. Indeed, the vote, initially scheduled for this month, will finally take place in February 2023. This information was communicated by a spokesperson for the European Parliament. It appears that the postponement is due to the fact that there is still steps to take before being able to adopt this regulation.
Indeed, the text must first be translated into the 24 official languages of the EU. Then, the dossier of the bill must be added to the Official Journal of the EU, which will formalize its application. A period of adaptation to the MiCA regulation is planned, and it should extend over 12 to 18 months. Effective enforcement of the new laws put in place by the settlement is expected to begin in early 2024 at the earliest.
What does the MiCA regulation say about cryptos?
One of the clauses of the MiCA regulation states that crypto companies will be held responsible for the possible loss of their customers’ funds. The idea is to holding crypto companies accountable and get them to strengthen their security system. This will reduce the risk of hacking their platforms.
In addition, the MiCA regulation covers the stablecoin market. It will oblige the issuers of these cryptos to always ensure that they have a sufficient liquid reserve. “Each holder of “stablecoins” can be reimbursed at any time and free of charge by the issuer», stipulates the MiCA regulation.
In an effort to protect crypto investors, the European Union has drafted a bill. The latter, called MiCA, includes a series of regulations that will be implemented in just over a year.
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