EU’s MiCA rule will come into effect in 2 steps, here is the timeline
In 2024, MiCA will come into effect in two major phases. The first phase includes stablecoins regulation & the second one is crypto businesses regulation.
Markets in Crypto Assets (MiCA) is a bill or we can say a set of rules dedicated to the crypto sector regulation across the European Union (EU) countries. Just a few months back, MiCA successfully secured approval in the EU parliament. MiCA aims to regulate the crypto sector in a generalised form only but later new developments will come to fix the loopholes of the MiCA crypto rule.
On 9 June 2023, Binance CEO Changpeng Zhao (CZ) shared very important information on MiCA & confirmed that the EU government published an exact timeline for MiCA that will come into effect.
CZ noted that MiCA’s stablecoin regulation rule will come into effect on 30 June 2024 but MiCA’s crypto firms regulatory framework will come into effect from 30 Dec 2024. So here crypto exchanges have nearly 1 & ½ years to prepare themselves to follow all the measures of MiCA, while stablecoin firms have only 1 year to establish their business under MiCA’s stablecoins regulation rules.
Binance CEO confirmed that Binance exchange is already doing huge work to provide crypto service with full clarity.
This is a very big opportunity for the crypto firms to establish their businesses in the EU countries, as laws will be clear for them to follow.
US & unclear laws
In the US, so far no government agency has proposed any kind of proposal to regulate the Crypto sector under the new regulation framework, as the crypto sector is new in this world.
In the last 5-6 months, several crypto exchanges received enforcement actions from the United States Securities Exchange Commission (SEC), while in the past the SEC body never provided any guidelines or rules for the crypto firms to follow, so that Crypto companies can easily provide services under compliance with the federal securities laws.
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