Finally, EU’s newly designed regulatory framework passed

MiCA grabbed 517 vote support for its crypto regulation framework. 

The Markets in Crypto Assets (MiCA) is a fully crypto-focused independent agency of the European Union (EU). Between 2021 to 2022, MiCA completed its work on a new crypto regulation bill & also introduced some major changes, where crypto leaders were not supporting proposed crypto laws against Proof-of-work (PoW) crypto assets. 

On 20 April 2023, The European Union (EU) voted in favour of the Markets in Crypto Assets (MiCA) with a majority of 517-38. 

With this major vote support, the EU became the first in the world to bring a comprehensive crypto regulatory framework. The full vote in favor of MiCA doesn’t mean that newly designed crypto laws will come into effect this year, instead, it will take around 12 months. 

Legal experts believe that June or July of the next year will be the possible time frame, where MiCA’s crypto rule will come into effect. 

Under the newly designed regulation framework, Crypto companies & crypto wallet service providers will be allowed to provide services under the jurisdiction of the EU. 

Stablecoin issuer companies will remain at the top of the radar of the regulatory framework, which will force the stablecoin companies to maintain a decent amount of reserved funds to rescue the stablecoin holders in case of depeg situation.

Reports noted that MiCA will help to restore the trust level of the citizens in the crypto sector, which has been degraded badly because of the downfall of several crypto companies like FTX, Voyager Digital Currency, Celsius Network, TerraUSD stablecoin, etc. 

A crypto Twitter user said that the United States Securities and Exchange Commission (SEC) chairman Gary Gensler must take note of this move by the EU. 

Read also: VC firm says SEC is unable to effectively regulate crypto asset market