{"id":175538,"date":"2023-05-16T11:32:05","date_gmt":"2023-05-16T11:32:05","guid":{"rendered":"https:\/\/precoinnews.com\/?p=175538"},"modified":"2023-05-16T11:32:05","modified_gmt":"2023-05-16T11:32:05","slug":"eu-finance-ministers-approve-mica-crypto-regulation","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/eu-finance-ministers-approve-mica-crypto-regulation\/","title":{"rendered":"EU finance ministers approve MiCA crypto regulation"},"content":{"rendered":"
The Economic and Financial Affairs Council of the European Union \u2014 comprising finance ministers of all member states \u2014 has given the green light to the highly-anticipated Markets in Crypto-Assets (MiCA) regulation after a vote on May 16.<\/p>\n
Finance ministers from 27 member states\u00a0voted in favor of the MiCA bill, and amendments to several regulations and directives relating to the new legislation. <\/p>\n
Two more pieces of legislation, including regulation on information accompanying transfers of funds and certain crypto assets, were also adopted by the European Parliament in conjunction with MiCA\u2019s adoption.<\/p>\n
Related:\u00a0Industry leaders and policymakers react to passage of MiCA in EU<\/em><\/strong><\/p>\n The European Parliament formally adopted the MiCA legislation on April 20, paving the way for final approval by the European Council before the regulatory parameters take effect.<\/p>\n The legislation sets clear regulatory guidelines and requirements for using cryptocurrencies and related services and activities across the European Union. The scope of the legislation covers a range of cryptocurrencies, digital assets, utility tokens and stablecoins.<\/p>\n The next step in the long process for MiCA to become EU law requires the bill to be published in the Official Journal of the European Union<\/em>. MiCA will come into effect within a year, meaning the regulations will finally become law midway through 2024.<\/p>\n The European Commission first proposed MiCA in September 2020, but it has faced numerous hurdles and postponements on its way through the legislative process.\u00a0<\/p>\n The legislation has broadly been welcomed by cryptocurrency service providers and proponents alike, given that it creates a single market environment across Europe regarding regulatory requirements and operating procedures.<\/p>\n Related:\u00a0EU MiCA crypto regulation is a \u2018balancing act\u2019: Paris Blockchain Week 2023<\/em><\/strong><\/p>\n Key components of MiCA legislation include registration and authorization requirements for issuers of cryptocurrencies, exchanges and wallet providers.\u00a0<\/p>\n Stablecoin issuers must meet certain security and risk mitigation requirements, while cryptocurrency custody services must ensure sufficient security and safety measures to address potential cybersecurity and operational failures.<\/p>\n The legislation also provides a framework to prevent market abuse, insider trading and manipulative behavior in the cryptocurrency space.<\/p>\n This is a developing story, and further information will be added as it becomes available.<\/p>\n