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.
See related article: Bitcoin, proof-of-work ban removed from European Union’s MiCA
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.
See related article: European Union to track all crypto transfers