After three years after its initial introduction, the MiCA has finally been signed into law.
The European Union (EU) has made a significant stride in the governance of crypto-assets with the enactment of the Markets in Crypto-Assets (MiCA) framework.
This historic milestone, achieved after years of deliberations and reviews, brings a uniform regulatory standard to the burgeoning crypto industry in the region.
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As of May 31st, the MiCA bill has been officially signed into law.
Notable signatories included Peter Kullgren, Sweden's minister for rural affairs, and European Parliament President Roberta Metsola.
This achievement marks roughly three years since the European Commission first proposed the legislative measure, which has been debated and revised across various legislative bodies within the EU before securing final approval this year.
The main objective of MiCA is to establish a harmonized regulatory framework for crypto assets among EU member states. The new framework, upon coming into effect following its publication in the Official Journal of the European Union, will lay the foundation for more comprehensive regulations on crypto firms starting in 2024.
The original draft of MiCA was conceived in 2020. However, the subsequent market dynamics, including the 2022 crypto market crash and significant bankruptcies of high-profile crypto firms like FTX, BlockFi, and Celsius, raised questions about the need for a more extensive framework.
Following MiCA's approval, US Securities and Exchange Commission (SEC) commissioner Hester Peirce praised the European Union's promptness in establishing its digital asset regulation and claimed that MiCA could be a model for US crypto regulations.
With the enactment of the MiCA, the European Union took a major step towards a regulated and standardized crypto market. As the world watches and as market conditions evolve, the European Union's approach may set a precedent for other regions grappling with the question of cryptocurrency regulation.
Undoubtedly, MiCA is a significant development in the global crypto landscape that will have wide-reaching implications for investors and firms alike.
