• MiCA has been published in the EU’s official journal, kicking off a 20-day countdown for the regulation to become legally recognized.
• Regulations regarding stablecoins have an application timeline of 12 months and regulations regarding other crypto assets and service providers have an application timeline of 18 months.
• Crypto firms in the U.S. are facing regulatory uncertainty while several businesses are setting up shop or expanding business in the EU region in anticipation of MiCA becoming law.
MiCA Published in Official EU Journal
The European Union’s Markets in Crypto-Assets (MiCA) bill has passed two significant milestones following its approval by the EU Parliament in April. In May, it received support from the EU Council, and now it has finally been published in the Official Journal of the EU (OJEU). This kicks off a 20-day countdown for the regulation to “enter into force” and become legally recognized at the end of this period, though they will not be mandatory till their respective “date of applicability”.
Regulations Regarding Stablecoins
Regulations 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.
Crypto Businesses Setting Up Shop
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 exchange is at least 90% ready for MiCA license compliance if needed.
What Does MiCA Cover?
MiCA covers stablecoin issuance, licensing for crypto asset service providers and anti-money laundering rules. It seeks to provide a framework for digital finance companies operating within Europe that includes consumer protection requirements as well as monitoring requirements on all activities with cryptocurrencies and related services conducted within European borders.
U.S Regulatory Uncertainty
The regulatory uncertainty US crypto firms face makes regulations like MiCA more critical as regulators are doubling down on enforcement efforts while The United Kingdom asserts that it is close to releasing regulations for its own nascent market scenario too