With the latest move, the countdown until the MiCA comes into effect is on.
The Markets in Crypto-Assets (MiCA), a legislative framework for crypto assets in the European Union (EU), has officially entered its countdown to activation.
The EU added MiCA to the Official Journal of the European Union (OJEU) on June 9th, which sets in motion the path for the law to be effective from December 30th, 2024.
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While the legislation is officially in effect 20 days after its publication, it will only be applicable from the end of 2024. Moreover, a few components of the law will come into play six months earlier, on June 30th, 2024.
Initially introduced in 2020, MiCA was formally signed into law on May 31st. The legislation strives to establish a uniform regulatory landscape for crypto assets among EU member states.
As per the law, issuers of stablecoins must adhere to specified security measures and risk mitigation practices. Furthermore, cryptocurrency custody services must guarantee adequate security protocols to tackle potential cybersecurity threats and operational failures.
MiCA's legislation encompasses registration and approval prerequisites for issuers of cryptocurrencies, exchanges, and wallet providers. These components are integral to the law and carry their own specifications and requirements.
The legislation also describes guidelines to prevent market manipulation, insider trading, and deceptive practices within the cryptocurrency sector. It's designed to act as a regulatory safety net to ensure fair and secure transactions.
The legislation has received praise from cryptocurrency service providers and advocates alike. They appreciate the union's effort to create a unified crypto market landscape concerning regulatory obligations and operational procedures.
The incorporation of MiCA into the Official Journal marks the beginning of its journey toward providing a more uniform and secure regulatory environment for cryptocurrencies in the EU.
In other European Union-related news, the European Commission has partnered with Protokol to streamline the verification of educational and professional qualifications across member nations through the use of blockchain technology.