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

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

MiCA is in the process of being accepted by the European Union

This morning, Council of the European Union approves European Union regulation on crypto asset markets (Mica). This is the last version.

In order for MiCA regulations to be definitively accepted in their current form, still needs to be approved by the European Parliament’s Committee on Economic Affairs. This vote will take place on October 12. Regarding the sequence of events, Adan tells us:

“As the MiCA regulation is the subject of a political agreement by the various parties involved in June 2022, the European Parliament should, unsurprisingly, ratify the text. Then, after MiCA regulation was translated by lawyers and linguists and published in the Official Journal of the European Union, The countdown will begin for implementation.. »

all provisions deemed necessary by MiCA regulation will come into effect later in January 2024as soon as possible.

Digital Asset Service Providers (PSANs and others) registered with a European Union regulator, 18 additional months to comply. Information that has not escaped some companies that have been registering at a steady pace lately, especially in Italy.

European passport will also come to light. This allows, for example, a company registered with the Financial Markets Authority (AMF) to target customers from other countries of the European Union without having to take additional steps with national regulators.

In the current situation, the topic of decentralized finance (DeFi) is still quite unclear. Institutions have yet to define what they consider to be truly ‘decentralized’. Depending on how this concept will be evaluated, different DeFi entities (DAO, protocols, etc.)

MiCA regulations include consideration of the following: non-tradable tokens (NFTs) as financial assets (under certain conditions), total ban companies to reward their customers lending stablecoinsincluding algorithmic stablecoins in regulation and more.

💡 Want to learn more about what it takes to adopt MiCA? to find our explanatory dossier on the latest measures added to this regulation.

We find the concept. key CASPs (Crypto Asset Service Provider). MiCA distinguishes two types of CASPhence they are crypto asset service providers. Classic PSAPs and major PSAPs who are number Annual users exceeding 15 million.

Therefore, key CASPs will be differently regulated and required to hold more capital in terms of anti-money laundering and terrorist financing (LCB-FT) regulations.

In this we can see 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 a volume of exchanges rather than a set of users.

Thank you Adana (Digital Asset Development Association) Thank you for answering our questions about MiCA.

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

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