Belgium (Brussels Morning Newspaper) The European Parliament has voted through landmark legislation on cryptocurrency which will bring in new rules for the industry across the 27-country bloc.
Markets in Crypto Assets (MiCA) passed with 517 votes in favor and 38 against, with 18 abstentions, at a meeting in Strasbourg today.
Crypto firms including Binance, Coinbase, and Kraken welcomed the passing of the landmark legislation, while Stefan Berger, the MEP who led the bill’s creation, said in an emailed statement that Europe is now the “first continent with comprehensive regulation for crypto assets.”
MEP Ondřej Kovařík (ANO, Czechia), Renew Europe’s shadow rapporteur on this file, said:
“The European Parliament has agreed to a landmark deal on the MiCA Regulation. This marks the first step in framing the crypto-asset market in Europe, with the objective of giving certainty to investors, and a predictable framework for crypto firms operating within the EU Single Market. We now need strong cooperation between stakeholders and competent authorities to ensure clear understanding, implementation, and enforcement of the new rules on all sides, particularly on licensing requirements. I believe the approved regulation strikes the right balance in mitigating risks and fighting money laundering in the crypto sector without preventing innovation and overburdening businesses, particularly smaller businesses.”
The MiCA legislation means that the EU will have a unified approach to crypto asset regulation across all 27 member states, making it possible for firms approved in one country to “passport” their business into others with minimal additional paperwork.
But to achieve initial approval, firms will face much higher standards of disclosure, including the preparation of a detailed white paper for each asset offered. Stablecoin issuers, meanwhile, are subject to even tighter rules, including holding sufficient cash to back up customer funds.
MiCA will also ask crypto firms to report the environmental impact of their activities, in a compromise measure after lawmakers removed an all-out ban on the proof-of-work mechanism from an earlier draft.
While concerns have been raised about the possible administrative burden of MiCA on small firms, many crypto companies have welcomed the European Union’s recognition of the industry.
The vote also prompted crypto commentators to contrast the EU’s approach with that of other countries.
