The European Union adopted the “MiCA” regulation regarding the crypto market. It must be approved by the European Parliament and the European Council before it enters into force in 2024.
MiCA established from January 2024
The European Union has finally approved the Crypto Asset Markets Regulation through the European Council. This is the final version that has been approved by the European Council.
The MiCA regulation must be approved by the European Parliament’s Economic Affairs Committee on October 12 for final approval. The MiCA regulation and all its provisions will be implemented from January 2024. It is unlikely that the regulations will come into force earlier.
“Since the MiCA regulation was the subject of a political agreement between the various stakeholders in June 2022, the European Parliament should unexpectedly approve the text. Then, once the MiCA regulation is translated by lawyers and linguists and published in the Official Journal of the European Union, the countdown to its implementation will begin. »
Digital asset service providers (PSANs and others) registered with EU regulators will have an additional 18 months to comply. Some companies have been signing up at a rapid pace recently, especially in Italy, and the word has not escaped.
With an EU passport, companies can target customers from other EU countries without having to comply with national regulators. For example, a company registered with the AMF may sell to customers in European Union countries.
Much of the current debate surrounding DeFi centers around the vague definition of the term. As this distinction is vital to many DeFi projects, various organizations and institutions debate its meaning. This includes discussions of DeFi protocols, DAOs and other related projects.
MiCA legislation treats certain NFTs as financial assets – subject to certain conditions. It is also considering banning companies from paying their customers with stablecoins. In addition, the regulation considers algorithmic stablecoins for its regulation, as well as the inclusion of other types of stablecoins.
Allow investors to avoid scams
The MiCa regulation aims to protect investors by regulating the crypto industry. It was initially approved by the European Parliament and the Council in July 2017.
The French constitution uses the term PSAN for digital asset service providers. It requires these service providers to obtain a license from local authorities within 2 months. MiCa sends SMS to service providers named CASP-Crypto-Asset Service Providers instead of PSAN. At least 15 million users are required for a company to be considered a PSAP.
Since the Pacte law was passed by Congress, the AMF can now register or approve crypto companies operating in France. 52 companies have been registered so far; including recently Crypto.com, Société Générale Forge and Binance. However, no approved company has received approval. This is because the AMF needs the cooperation of the Central Bank to approve new companies.
The Brussels-brokered agreement aims to protect “investors from the dangerous risks associated with investing in crypto-assets.” This allows them to avoid operating systems that exist only to rip them off.
The talks in Brussels are taking place in a particular context, with the last two cryptocurrency crashes occurring in May and June. During these periods, some assets are weaker than others, including some so-called “algorithmic” stablecoins, such as the collapsed blockchain stablecoin Terra terra USDT (UST).