EU Starts Countdown to Crypto Legislation, Adds MiCA to Official Gazette

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On June 9, European Union legislation on crypto-asset markets (MiCA) was published in the Official Journal of the European Union (OJEU). This triggers the countdown for the law to come into force on December 30, 2024.

The regulations, enacted on May 31 after first being introduced in 2020, aim to create a consistent regulatory framework for crypto assets among member states of the European Union.

Although the rules officially come into force within 20 days of their publication, the rules will begin to apply on December 30, 2024, with parts of the legislation coming into force six months earlier, on June 30, 2024.

Cryptocurrency service providers and developers hailed the legislation for creating a single market environment across Europe in terms of regulatory requirements and operating procedures.

Key elements of the MiCA legislation include registration and authorization requirements for cryptocurrency issuers, exchanges and wallet providers.

Related: EU to Use Blockchain for Verification of Degrees and Professional Degrees

According to the rules, stablecoin issuers must meet certain security and risk mitigation requirements, while cryptocurrency custodians must ensure sufficient security and safety measures to deal with potential security failures. cybersecurity and operation.

The legislation also provides a framework to prevent market abuse, insider trading, and manipulative behavior in the cryptocurrency space.

Meanwhile, crypto markets and traders in the United States are coming under pressure after the Securities and Exchange Commission launched regulatory action against crypto exchanges Binance and Coinbase.

Both exchanges are being sued on several counts, including failure to register as licensed brokers and offering unregistered securities.

Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Word?

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