European Union’s Long-Awaited Cryptocurrency Regulation MiCA Gets Final Approval
Countries worldwide seek regulation when it comes to the cryptocurrency industry and European Union made a huge step towards a unified regulation . The European Union's newly proposed crypto law, known as MiCA (Markets in Crypto Assets) was adopted today by the EU's finance ministers. So what does MiCa include and what can prospective investors anticipate?
Countries worldwide seek regulation when it comes to the cryptocurrency industry and European Union made a huge step towards a unified regulation . The European Union’s newly proposed crypto law, known as MiCA (Markets in Crypto Assets) was adopted today by the EU’s finance ministers. So what does MiCa include and what can prospective investors anticipate?
Economy Ministers of 27 Countries Approved MiCA
Earlier today the MiCA law was overwhelmingly passed by the Council of the European Union which represents the EU’s 27 member states . This might be a blueprint for global cryptocurrency regulation . New anti-money laundering provisions covering cryptocurrency related financial transactions were also approved by ministers .
For crypto businesses like wallet and exchange providers to legally operate in the EU they must comply with MiCA’s licensing requirements . Stablecoin issuers must also provide evidence that they have adequate funds on hand . It was known that the law was trapped with administrative barriers and waiting for approval even though its key provisions had been completed in June .
As for whether or not tax authorities should agree to exchanging data on people’s investments in cryptocurrencies the finance ministers of the 27 member states are anticipated to clarify the law shortly .
What Is So Important About MiCA?
MiCA’s primary goals as they stand now are consumer protection, information transparency, expanded audit options, and improved understanding of energy use . Of course preventing criminal activity is also crucial . The European Union which has recently taken quite harsh measures to combat money laundering may serve as a model for the United States with this kind of legislation .
The European Securities and Markets Authority (ESMA) has just been granted expanded authority . The ESMA is currently working on a number of prohibitions and rules pertaining to cryptocurrency exchanges and service providers .
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