EU thrashes Crypto assets on following it’s set of rules

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By Degen Lipsa

During the current EU Parliament plenary session, the Markets in Crypto Assets (MiCA) law is up for formal passage.

The European Union law aims to establish standardised rules for crypto assets at the EU level.

Crypto Regulations

On Thursday, the European Parliament will vote on whether to approve the regulation on crypto-asset markets (MiCA). The landmark new legislation appears to be the most complex set of crypto market-specific rules at a time when US authorities have failed to build a clear belief with a crypto regulation plan. The European Union law aims to establish standardised rules for crypto assets at the EU level. As a result, this regulatory framework provides legal clarity for crypto assets that are not covered by existing EU legislation.

The Markets in Crypto-assets (MiCA) legislation, billed as the most comprehensive regulatory framework for cryptocurrency, is set for a formal approval vote at the ongoing EU Parliament plenary session, which runs till Thursday. The MiCA law language, which covers three forms of crypto assets, was passed late in 2022. A vote on the legislation was originally slated for January 2023, but it was postponed due to technological difficulties. The current EU plenary session will also include a vote on the Transfer of Funds Regulation (TFR).

EU Vote On MiCA Regulation

Whereas the situation in the cryptocurrency markets has been muddled by a tumultuous year, the EU’s efforts to put in place a clear legal framework are encouraging. The MiCA policy “promotes innovation and use of crypto assets,” according to a legal description, which contrasts sharply with the views of US Securities and Exchange Commission (SEC) Chair Gary Gensler during a House Financial Services Committee hearing on SEC oversight on Tuesday.

“I hope that our rules could become a model for other countries,” EU financial services commissioner Mairead McGuinness told the parliament. McGuinness also said the commission will study whether further rules are needed for decentralised finance, and for lending and borrowing in cryptoassets.

“We believe had FTX been captured under the EU’s jurisdiction, many of its practices would not have been permissible under MiCA”

Meanwhile, it is unclear when the MiCA law would apply to cryptocurrency enterprises. Industry sources predict that effective regulation for Crypto Asset Services Providers (CASP) will take roughly 18 months.

However, whether the regulation would affect the global crypto regulatory landscape remains to be seen.

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