Crypto Regulation Takes New Leap as European Council Adopts MiCA
Godfrey Benjamin Oct 06, 2022 02:15
The European Union is drawing closer to adopting the comprehensive Markets in Crypto Assets (MiCA) regulation as the European Council has passed the framework.
The European Union is drawing closer to adopting the comprehensive Markets in Crypto Assets (MiCA) regulation as the European Council has passed the framework through voting on Wednesday.
Regarded as a landmark move toward a regulated future in the European Union, the passage of the guidelines by the Council leaves the European Parliament as the only bridge toward the final adoption of the bill before the targeted implementation commences. The Parliament is billed to meet on October 10, where the body's economic affairs committee is expected to vote on the proposals.
Should the Parliament pass the proposals, the next office move will be to integrate them into the official journal of the European Union to begin the process of its enforcement.
As noted, many details will still be analyzed as EU officials work up additional focal points in the proposal. Once settled, these additional statutes will be unveiled to the appropriate stakeholders.
The EU has been quite fragmented regarding the approach toward digital currencies, with most member nations issuing licenses and permitting crypto based on the approach and guidelines that are best known to their officials. The trend will change with the advent of MiCA as every member state in the EU will be guided by the common laws enshrined in the bill.
The entire offshoot of the digital currency ecosystem is billed to be impacted by the proposal in MiCA. There are concerns bordering on the suitability of provisions in the bill concerning non-Euro-denominated stablecoins. The bill puts a cap that might significantly impose systemic censorship on transactions conducted through the non-Euro-backed stablecoin.
The clause remains a volatile subject of discourse and French officials are particularly bent on maintaining the status quo in order to help bolster the sovereignty of the Euro currency.
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