The Council of the European Union adopts the MiCA regulation – Expected to enter into force in 2024

The European Union Regulation on the Crypto Asset Market (MiCA) has been adopted by the Council of the European Union. MiCA still needs to be accepted by the European Parliament for it to come into force in 2024 at the earliest.

https://cryptoast.fr/conseil-europeen-adopte-regulation-mica-entree-application-2024/

MiCA in the process of being adopted by the European Union

This morning, the Council of the European Union has approved the European Union regulation on cryptoactive markets (Mica). This is the final version.

For the MiCA regulation to be definitively adopted in its current form, must still be approved by the Economic Affairs Committee of the European Parliament. This vote will take place on October 12. Regarding the sequence of events, the Adam tells us that:

“After being the subject of a political agreement by the various stakeholders in June 2022, the MiCA regulation should approve the text by the European Parliament. Then, once the MiCA regulation is translated by lawyers and linguists and published in the Official Journal of the European Union, the countdown to its implementation will begin. »

All provisions required by the MiCA regulation will enter into force in January 2024as soon as possible.

Digital asset service providers (PSAN and others) registered with a European Union regulator will have 18 additional months to comply. Information that has not escaped certain companies that have been registering at a sustained rate recently, particularly in Italy.

A European passport will also see the light. This will allow, for example, a company registered with the Financial Markets Authority (AMF) to address clients from other countries of the European Union, without having to carry out additional procedures with national regulators.

As it is, the topic of decentralized finance (DeFi) is still unclear. Institutions have yet to define what they truly consider ‘decentralized’. Depending on how this notion is judged, different DeFi entities will be affected or not (DAO, protocols, etc.).

MiCA regulations include the consideration of non-fungible tokens (NFTs) as financial assets (under certain conditions), total ban that companies remunerate their customers with stablecoin lendinginclusion of algorithmic stablecoins in regulation, and more.

💡 Want to know more about what adopting MiCA will entail? Find our explanatory sheet on the latest measures added to this regulation.

We find the concept of Major CASPs (Crypto Asset Service Provider). MiCA distinguishes two types of CASPwhich therefore are crypto asset service providers. Classic PSAPs and Significant PSAPs who are those whose number of annual users that exceeds 15 million.

Significant CASPs will therefore be supervised differently in terms of Anti-Money Laundering and Anti-Terrorist Financing (AML-CTF) regulations and should be required to hold more capital.

We can see in this the desire to protect European players from American or Asian giants.. However, for platforms more dedicated to professionals, it would be better to focus on trading volume rather than number of users.

We thank Adam (Association for the Development of Digital Assets) for answering our questions about MiCA.

Source: MiCA Regulation published by the Council of the European Union

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