EU Council votes unanimously for mica legislation

EU Council votes unanimously for mica legislation

The Council for Economic Affairs and Finance of the European Union unanimously spoke out in a voting process on May 16, 2023 for the regulation of the markets for crypto-assets (mica).

The finance ministers of the 27 member states agreed to the Mica Act, including changes in several rules in connection with the new crypto legislation.

EU Council agrees Mica Act

The EU Council approval is less than a month after the European Union's parliament has accepted the Mica Law Derse. On April 20, the EU legislators voted with 517 to 38 votes for the new crypto licensing directive.

The new legislation, which determines comprehensive regulatory guidelines for crypto-assets and the associated services throughout the EU, covers a wide range of digital assets, including utility tokens and stable coins.

The Mica Act, which was first presented to the European Commission in 2020, has developed into one of the first comprehensive regulatory framework for the crypto industry. The law aims to regulate issuers of cryptocurrencies, stock exchanges and wallet providers by determining registration and authorization requirements.

StableCoin issuers would also have to meet certain criteria such as security and risk reduction strategies. At the same time, crypto-attending service providers would have to implement security measures in order to cope with potential cyber security and company failures. The EU believes that the MICA law will help prevent market abuse, manipulative tactics and insider trading in the crypto.

mica will go live in 2025

Since the EU Parliament and the EU Council gave the green light for mica politics, the next step would be to publish in the EU Journal. The regulations for stable coins are expected to come into force in mid -2024, while the more extensive rules for cryptodia providers could come into force from January 2025.

In addition to Mica, the EU intends to implement the Travel Rule guidelines from January 2025. The rule will deal with crypto transactions and demands that customers receive information about the source of assets and the beneficiary. The travel guideline, which applies to transfers worth more than 1,000 euros (approx. $ 1,100) of crypto wallet addresses to private users, does not apply to transactions from person to person.

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