The European Council on Wednesday approved a proposal for cryptocurrency regulation known as the Markets in Crypto Assets Regulation (MiCA), in the first move towards establishing a licensing mechanism for crypto exchanges and assets in Europe. 

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Fast facts

  • Lawmakers at the European Parliament are still required to formally agree on the full legal text. The regulation is expected to come into effect in 2024. 
  • “To ensure the proper supervision and monitoring of offers to the public, issuers of asset-referenced tokens should have a registered office in the Union,” the proposal said.
  • The proposal imposes regulations on stablecoins and cryptocurrencies, regardless of how the issuer intends to design the crypto asset. 
  • The proposal also stated that crypto assets have the potential to bring “significant benefits” to retail investors as well as market participants. 
  • The MiCA proposal was first introduced in September 2020 to the European Commission. 

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