EU starts countdown to crypto legislation, adds MiCA to official journal
On June 9, the European Union’s Markets in Crypto-Assets (MiCA) legislation was published in the Official Journal of the European Union (OJEU). This triggers the countdown for the law to come into effect from Dec. 30, 2024.
The regulations, signed into law on May 31 after first being introduced in 2020, aim to create a consistent regulatory framework for crypto assets among European Union member states.
While the rules officially come into force within 20 days of publication, the rules will start to apply on Dec. 30, 2024, with some parts of the legislation coming into effect six months earlier, on June 30, 2024.
Cryptocurrency service providers and proponents alike have hailed the legislation for creating a single market environment across Europe in terms of regulatory requirements and operating procedures.
Key components of the MiCA legislation include registration and authorization requirements for issuers of cryptocurrencies, exchanges and wallet providers.
Related: EU to use blockchain for educational and professional credential verification
As per the rules, stablecoin issuers must meet certain security and risk mitigation requirements, while cryptocurrency custody services must ensure sufficient security and safety measures to address potential cybersecurity and operational failures.
The legislation also provides a framework to prevent market abuse, insider trading and manipulative behavior in the cryptocurrency space.
In the meantime, crypto markets and operators in the United States are coming under pressure after the Securities and Exchange Commission initiated regulatory action against crypto exchanges Binance and Coinbase.
Both exchanges are being sued on multiple counts, including failure to register as licensed brokers and offering unregistered securities.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?