The European Union has finalized its new crypto asset and market regulations, completing a lengthy and complex legislative process for the world’s first comprehensive legal framework for digital assets like bitcoin. The formal adoption of the legislation is the last step in the legislative procedure after a provisional deal was reached in June, a trilogue with the European Parliament and the Commission, and the EU lawmakers’ vote in April this year.
Elisabeth Svantesson, the Finance Minister of Sweden, was quoted in a press statement as saying: “I am very pleased that today we are delivering on our promise to start regulating the crypto-assets sector. Recent events have shown the need to impose rules that will better protect Europeans who have invested in these assets and stop the misuse of the crypto industry to money-laundering and funding terrorism.”
The new rules apply to digital assets such as bitcoin and other cryptocurrencies, stablecoins, utility tokens with asset references and asset referenced tokens. It also regulates both trading platforms and digital wallets that hold crypto assets. According to the EU Council, the new regulations are intended to protect investors, preserve financial stability, while allowing innovation and fostering the attractiveness of the crypto-asset sector. They also note that the global nature of the crypto market makes it a better option than the current situation where legislation is only in place in certain member states.
MiCA is an integral part of the larger package for digital finance, which includes a digital strategy for finance and a proposal for the use of distributed ledger technologies by wholesalers. With the new regulation, the European Union is creating a common language and setting rules for the supervision, protection of consumers, and environmental safeguards of digital assets.
How will MiCA change the regulatory climate for the crypto industry and users in the Old Continent? Share your thoughts about the new regulation in the comment section below.