- The uncertainty crypto firms face in the U.S. makes regulations like MiCA more critical.
- MiCA has been published in the EU’s official journal.
- The development carries significant implications.
As crypto regulatory uncertainty heightens in the United States, regulations like the European Union’s Markets in Crypto-Assets (MiCA) bill grow in importance.
Following its approval by the EU Parliament in April, the bill has passed two significant milestones. In May, the bill received support from the EU Council, and now it has finally been published in the Official Journal of the EU (OJEU).
The Countdown Begins
The EU published MiCA in its official journal on Friday, June 9, kicking off a 20-day countdown for the regulation to “enter into force.” This means the rules become legally recognized at the end of the period, though they will not be mandatory till the “date of applicability.”
MiCA has two different applicability timelines for its provisions. Rules regarding stablecoins have an application timeline of 12 months, which implies that they will be applicable by June 30, 2024. On the other hand, regulations regarding other crypto assets and crypto asset service providers have an application timeline of 18 months, implying they will be mandatory from December 30, 2024.
As MiCA edges closer to becoming law, several crypto businesses, including Gemini and OKX, have already started moving to set up shop and expand business in the region. Meanwhile, a Binance executive has asserted that the crypto exchange is at least 90% ready for the license.
MiCA covers stablecoin issuance, licensing for crypto asset service providers, and anti-money laundering rules.
On the Flipside
- Regulators in the U.S. are doubling down on crypto enforcement efforts.
- The United Kingdom has asserted that it is close to releasing regulations for the nascent market.
Why This Matters
MiCA being published in the Official Journal of the EU is a significant milestone that brings it closer to becoming enforceable.
Read this to learn more about MiCA:
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