MiCA, the first complete legal framework for crypto regulation, has been voted on by the EU Parliament.
On the evening of February 20, 2023, the MiCA was adopted after a vote of 517-38 votes in favor of the EU Parliament.
Parliament also passed a separate set of rules on Remittances by 529-29 votes in favor. This regulation requires crypto activists to verify the identity of their customers to prevent money laundering.
With the adoption of the MiCA, the EU is the first region in the world to issue a full regulatory framework to regulate the cryptocurrency sector.
EU Member of Parliament Mairead McGuinness affirmed:
“For the first time in the world there was a vote on the complete set of crypto regulations.
The bill will go into effect next year. We are working to protect consumers and ensure financial stability and market integrity.”
Some notable provisions in the MiCA include:
1/13 Agreement between the EU institutions on MiCA: we will have a common harmonized EU-wide regime for crypto-asset issuers and service providers, that will provide security for investors and support sustainability, while to reducing fragmentation and increasing legal clarity.
2/ MiCA provides protections against crypto or stablecoin crashes like LUNA – UST.
3/ Major stablecoins that are widely used as a means of payment with more than 200 million euros in transactions per day, will be subject to strict operating rules.
4/ Stablecoins will have to be securitized well enough to pass all claims as well as provide owner redemption rights. The reserves would have to be segregated and legally segregated, operated for the benefit of the owners, and would be fully protected in the event of insolvency.
5 / The EU will send a police to monitor cryptocurrencies. ESMA will have the right to intervene to prohibit or restrict the supply, distribution or sale of crypto services using CASP in the event of a threat to investor safety, market integrity or the integrity of the market. financial stability.
6/ The ESMA will also establish a list of disallowed third country CASPs and, together with national authorities, have far-reaching powers over each entity, including the possibility of closure. their website.
7/ MiCA will come with strong anti-money laundering measures. The CASP will have to be established with substantive management in the EU with a resident director and an office in the authorized country. Authorization will be denied if the AML criteria are not met.
8/ MiCA creates a strong investor protection framework. For non-issuer coins/tokens, such as Bitcoin, trading platforms will be responsible for providing the whitepaper and liable for any misinformation.
9/ MiCA also provides a warning to consumers about the risk of loss associated with fair marketing communication rules.
10/ For market abuses, there will also be clear rules on insider disclosure, prohibition of insider trading and market manipulation.
11/ ESMA will develop sustainability indicators to classify consensus mechanisms by adverse climate and environmental impacts.