MiCA Text Approved By EU Council, Proposal Goes To Parliament

MiCA Proposal Statements

The MiCA document was accepted by the EU's Permanent Representatives Committee and delivered to the head of the Economic and Monetary Affairs Committee of the European Parliament, based on a resource statement from October 5. The chair of the Permanent Representatives Committee, Edita Hrdá, stated that the cryptocurrency framework idea would be adopted should the European Parliament approve its stance at the first reading.

The MiCA proposal, initially presented to the European Commission in September 2020, proposes to establish a uniform regulatory regime for cryptocurrencies throughout EU member states. If the parliamentary committee approves the document, the policies might go into force in 2024. The next committee meeting will take place on October 10.

Effects of Proposal

The most recent version of the MiCA text stressed the importance of ensuring that the European Union's financial services regulation is fit for the digital era and supports a coming generation economy that serves the people, specifically by facilitating the use of modern technology. The absence of an encompassing Union framework for crypto-assets can result in a lack of user confidence in such assets, which might severely impede the creation of a market in those assets.

Since the establishment of MiCA, policymakers in the EU Parliament, Commission, and Council have debated the consequences of unifying crypto legislation across their 27 member states, with progress hampered by arguments on Proof-of-Work mining and stablecoins.