EU officials sign MiCA into law as a significant step towards the regulation of crypto assets. The new regulatory framework aims to bring clarity and oversight to the crypto industry, addressing concerns around money laundering and providing a comprehensive set of rules for market participants.
On a momentous day for the crypto industry, European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren affixed their signatures to the MiCA legislation.
This followed the successful passage of the legislation through the European Parliament in April. It also underlined the commitment of EU officials to establishing a regulatory framework for crypto.
Accompanying the MiCA framework was a separate law designed to address concerns regarding money laundering and anonymous transactions. The new law prohibits anonymous crypto transactions exceeding €1,000 ($1,070) and aims to safeguard the financial system from illicit activities.
Implementation Timeline
While the signed legislation marks a significant milestone, its provisions will only become enforceable 20 days after publication in the official EU journal. Stablecoin issuers, subject to stricter regulations, will have 12 months to ensure compliance with the new law.
Additionally, other crypto issuers and crypto asset service providers (CASPs) will have a more extended timeframe of 18 months to prepare themselves.
EU’s Pioneering Role in Crypto Regulation
With the enactment of the MiCA framework, the European Union emerges as the first major jurisdiction to establish a comprehensive regulatory framework for crypto assets.
This development is welcomed by industry players seeking clarity and a stable regulatory environment. Prominent crypto companies like Binance have voiced their support for the European initiative. Additionally, they hailed it as a pragmatic solution to the industry’s challenges.
Binance CEO’s Perspective
Changpeng Zhao (CZ), the CEO of Binance, lauded the EU’s efforts to regulate crypto. He also expressed his readiness to comply with the new rules. CZ emphasized the significance of having clear guidelines for crypto exchanges to operate within the EU. Further, he indicated the willingness of his company to adapt its business practices to ensure full compliance.
Read More:
Former SEC Official Cautions Influencers about Crypto Promotion, and Bybit Withdraws from Canada