• The MiCA bill, designed to regulate crypto markets in the European Union has been published in the EU’s official journal.
• The 20-day countdown for the regulation to enter into force has started, with different provisions having 12 and 18 month applicability timelines.
• Crypto businesses have already begun to move towards setting up shop in the region, while U.S. regulators are increasing enforcement efforts and UK is close to releasing regulations for the nascent market.
MiCA Published in Official EU Journal
The Markets in Crypto-Assets (MiCA) bill has been approved by the EU Parliament and received support from the EU Council. Now it has finally been published in the Official Journal of the EU (OJEU), kicking off a 20-day countdown for it to enter into force.
Implications of MiCA’s Publication
The publication of MiCA carries significant implications as regulatory uncertainty heightens in the United States. It offers crypto firms a means of dealing with this uncertainty as they can now operate legally within Europe once it enters into force. The rules become legally recognized at the end of this 20-day period, though they will not be mandatory till their respective application dates: 12 months for stablecoins and 18 months for other crypto assets and service providers.
Crypto Businesses Moving Towards Setting Up Shop
In anticipation of MiCA becoming law, several crypto businesses such as Gemini and OKX have already started moving to set up shop and expand business within Europe. Binance also claims that it is 90% ready for licensing under MiCA’s terms once it comes into effect.
U.S.’s Increasing Enforcement Efforts
Regulators in the U.S., on the other hand, are doubling down on their enforcement efforts regarding cryptos while UK asserts that they’re close to releasing regulations applicable to this nascent market too.
The publication of MiCA in its official journal marks a major milestone towards making it enforceable law within Europe and provides much needed clarity amid growing global regulatory uncertainty surrounding cryptos . Its entry into force will bring about a number of changes including new stablecoin issuance rules, anti-money laundering guidelines as well as licensing requirements for crypto asset service providers; all geared towards protecting consumers & investors within Europe’s digital asset sector