The European Union's Crypto Asset Markets Regulation (MiCA) was published in the Official Journal of the European Union (OJEU) on Friday. Now, time is progressing for the implementation of important crypto licensing rules.
The entirety of the law, which was published alongside the relevant legislation (MiCA), requires crypto wallet providers to identify their customers when transferring money. It offers a license to crypto companies such as exchanges and wallet providers to operate across the bloc. It also introduces new governance and financial requirements for issuers of stablecoins.
This comes as US crypto operators face uncertainty following the Securities and Exchange Commission's (SEC) move against Binance and Coinbase. The law emerges at a time of significant uncertainty, with the SEC filing lawsuits, arguing that tokens traded on exchanges constitute regulated financial instruments.
The publication of the 200-plus-page MiCA law indicates that a draft law has officially entered the EU's regulatory book. Legally, both regulations will come into effect within 20 days. Furthermore, some provisions will be applicable from December 30, 2024, while others will come into effect on June 30, 2024.
The political outlines of both laws were adopted last June. However, the final text had to be translated into many of the EU's official languages, resulting in numerous delays to the official agreement.