Europe’s landmark cryptocurrency regulation, known as Markets in Crypto Assets (MiCA), has received unanimous approval from European Union (EU) finance ministers. The final legislative step was taken during a meeting of the EU’s Economic and Financial Affairs Council (EcoFin) on Tuesday, with no objections raised.
MiCA aims to establish a consistent and unified approach to crypto regulation across the European bloc. It had previously been passed by members of the European Parliament in Strasbourg last month. The adoption of MiCA by EcoFin marks the last stage in the legislative process, and the regulation is set to become law this summer after being entered into the EU’s official journal.
The implementation of MiCA will involve an adjustment period, allowing regulators and companies to familiarize themselves with the new rules before they come into full effect. Some specific provisions related to stablecoins will be implemented within a year, while others will be enforced after 18 months.
The introduction of standardized regulations for cryptocurrencies in the EU has received widespread support from the industry and regulators. Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), even mentioned that MiCA could serve as a potential model for the United States’ approach to crypto regulation.
Billy Sebell, executive director of the XDC Foundation, welcomed the approval, stating that the EU’s enactment of this legislation is a positive step toward embracing blockchain technology. He believes it will lower barriers to entry for individuals and entities to benefit from blockchain’s potential in various projects and crypto assets.
The unanimous approval of MiCA by EU finance ministers underscores the significance of safeguarding investors and combating the illicit use of cryptocurrencies, including money laundering and financing of terrorism.
