European Parliament approves MiCA crypto-regulation bill

European Parliament members voted in favor of new rules for the digital asset industry in the European Union

European Parliament members in favor of the Markets in Crypto-Assets (MiCA) bill to regulate cryptocurrencies. The EU became one of the first jurisdictions in the world to introduce comprehensive rules for cryptoassets. As well as consumer protection, financial stability and innovation, the European Commission said in a statement.

The MiCA project, the main provisions of which were agreed upon last year. It will allow cryptocurrency exchanges and cryptocurrency storage companies to offer their products legally in the EU. The document also establishes rules for stablecoins issuers.

Once the law enters into force, cryptocurrency companies will have to obtain registration in one of the EU member states. This will allow them to work in the entire European Union.

The law will come into force in July after being formally approved by the 27 member states of the bloc, expects European Commissioner Mairid McGuinness. In this case, some provisions of the act will come into force gradually. For example, the rules governing stablecoins will apply from July 2024.

European Banking Authority (EBA) and European Securities and Markets Authority (ESMA). They will ensure that crypto platforms comply with the rules. And use the necessary risk management processes.

Our experts note that European Parliament members voted in favor of a law to regulate transactions. This document requires operators of cryptocurrency platforms to identify their clients in order to prevent money laundering.