Connect with us
Active Currencies 14794
Market Cap $2,467,692,571,200.00
Bitcoin Share 51.25%
24h Market Cap Change $-0.87

European Parliament Committee approves MiCA crypto framework

2min Read

Share this article

The European Parliament Committee on Economic and Monetary Affairs (ECON) on 10 October approved the Markets in Crypto-Assets (MiCA) framework. It was only in the last week that the European Council approved the final text of MiCA.

Stefan Berger, a member of the ECON, confirmed the news on Twitter.

The MiCA legislation has been arrived at as a result of negotiations between the EU Council, the European Commission, and the European Parliament.

Committee members passed the crypto framework policy in a vote of 28-1. A final vote on the legislation is expected in the European Parliament soon.

MiCA a “European Success”

It was in September 2020 that the proposal was first introduced to the European Commission. When in effect, MiCA would be the guiding framework behind crypto-related rules being framed in 27 member states of the EU.

Once it is finally passed in the parliament following legal and linguistic checks, MiCA could come into effect beginning 2024. Berger had said.

“MiCA is a European success. We are the first continent to have a crypto-asset regulation. In the Wild West of the crypto-world, MiCA will be a global standard setter.”

Increasing regulations for crypto firms in Europe

Crypto services providers, once registered with national authorities, can market their products across the continent as per MiCA, given that they adhere to basic requirements meant to safeguard investors and promote stability.

As per MiCA, stablecoin companies would be restricted on how many tokens they can issue if they are not denominated in euros or other currencies used by EU member states.

Energy consumption by mining companies is also a big issue in the MiCA framework. Such entities would be required to disclose their energy consumption.

Once the MiCA vote took place, the Parliament also approved a provisional deal on anti-money laundering (AML) that is directed at having compliance standards for crypto assets in an effort to crack down on money laundering.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.