The Council of the European Union has given its final approval to new regulations for crypto markets and assets in the EU. The decision completes a long and complex legislative process for what is considered the world’s first comprehensive legal framework for digital assets such as Bitcoin.
EU finance ministers give a final nod to markets in the Crypto Assets Act
At the meeting on Tuesday, Council of the European Union, composed of finance ministers of member states, adopted the Markets in Crypto Assets Legislation (MiCA). The set of rules places cryptographic assets, their issuers and cryptographic service providers within a federation-wide regulatory framework.
The Council noted that formal accreditation is the final step in the legislative process. This comes after an interim agreement was reached in June 2022, after tripartite negotiations with the European Parliament and the Commission, and a vote by EU lawmakers in April this year.
“I am very pleased that today we are delivering on our promise to start regulating the crypto-asset sector,” said Elisabeth Svantesson, Sweden’s Finance Minister. Quoted in a press release, she also confirmed:
Recent events have underscored the urgent need to impose rules that will better protect Europeans who have invested in these assets, and prevent misuse of the digital currency industry for money laundering and terrorist financing purposes.
The legislation is designed to regulate stewardship, consumer protection, and environmental safeguards for digital assets, including cryptocurrencies such as bitcoin. The new rules also cover utility tokens, asset tokens, and stablecoins.
The law regulates the trading platforms as well as the digital wallets used to hold crypto assets. The Council of the European Union insisted that “this regulatory framework aims to protect investors, maintain financial stability, while allowing innovation and enhancing the attractiveness of the crypto-asset sector,” adding:
It also introduces a harmonized regulatory framework in the European Union which, given the global nature of the cryptocurrency markets, is an improvement over the current situation with national legislation in only some member states.
MiCA is part of a larger digital finance package, aiming to develop a common European approach, which also contains a digital finance strategy, a digital operating flexibility law, with respect to crypto service providers as well, and a proposal on a pilot system for distributed ledger technology for wholesale uses.
How will MiCA change the regulatory climate for the crypto industry and users in the Old Continent? Share your thoughts on organizing in the comments section below.