European Parliament Committee passes MiCA crypto regulations in landslide vote

European Union (EU) lawmakers voted 28 to 1 in favor of the new landmark crypto law, titled Markets in Crypto-Assets framework (MiCA) on October 10, with the final vote expected in a full European Parliament in December this year. 

The MiCA introduces a crypto licensing framework that outlines requirements for stablecoin issuers, as well as identify verification requirements for crypto exchanges. 

The latest development comes after lengthy negotiations between EU and lobbying groups dating back to September 2020. At the time, the EU aimed to create a consistent regulatory framework for cryptocurrencies among the 27 European Union member states.

An important breakthrough was reached when the EU endorsed and published the MiCA text on October 5, 2022, and it is slated to take effect in 2024. 

‘It is important to ensure that the [European] Union’s financial services legislation is fit for the digital age, and contributes to a future-ready economy that works for the people, including by enabling the use of innovative technologies,’ read the MiCA text. 

Shortly after the MiCA vote, the lawmakers also passed a separate legislation on the Transfer of Funds Regulation to set compliance standards in a bid to tackle money laundering. 

Photo: Global Finance Mag