EU Signs Crypto-Assets Framework Into Law, Creating Clarity for Crypto Firms2. Juni 2023
• The European Union’s new Markets in Crypto-Assets (MiCA) rules were signed into law on Wednesday by European officials.
• The MiCA framework provides a comprehensive regulatory framework for cryptocurrency, and will also ban anonymous crypto transactions of more than €1,000 to prevent money laundering.
• Major crypto companies such as Binance have praised the initiative, with CEO Changpeng Zhao calling it “a pragmatic solution to the challenges we collectively face.”
EU Signs New Crypto Regulations Into Law
The European Union has officially signed its new Markets in Crypto-Assets (MiCA) regulations into law on Wednesday. This regulatory framework seeks to provide clarity and create uniformity in how cryptocurrency is regulated across the EU.
What Does the MiCA Framework Do?
The MiCA framework offers a comprehensive regulatory system for all types of crypto assets that exist within the EU. It also bans anonymous crypto transactions of more than €1,000 ($1,070), in order to combat money laundering activities using cryptocurrencies.
Reaction from Major Crypto Companies
Major companies within the cryptocurrency industry have praised this move from the EU, including Binance CEO Changpeng Zhao (CZ). CZ stated that this was “a pragmatic solution to the challenges we collectively face” when discussing the new regulations and their implications for the industry.
Compliance Timelines Vary
Stablecoin issuers will need to ensure they are compliant with these laws within 12 months, while other crypto issuers and service providers will have 18 months to prepare themselves for these new regulations.
This makes Europe one of the first major jurisdictions to have a comprehensive regulatory framework specifically designed for cryptocurrency and digital assets. This should provide much needed clarity and guidance for those operating within this space going forward.