EU starts countdown to crypto legislation, adds MiCA to official journal

On June 9, the European Union’s Markets in Crypto-Assets (MiCA) legislation was printed in the Official Journal of the European Union (OJEU), initiating the timeline for the law to become operational on December 30, 2024.

The regulations, which were initially proposed in 2020 and subsequently signed into law on May 31, seek to establish a uniform regulatory system for crypto assets across all European Union member states.

The rules will become effective in 20 days following their publication, however they will not begin to be enforced until December 30, 2024, with certain components of the law taking effect before then on June 30, 2024.

Proponents and providers of cryptocurrency services have praised the legislation for generating a unified market atmosphere across Europe with regards to regulatory requirements and operating procedures.

Key elements of the MiCA law encompass registration and authorization needs for issuers of digital currencies, trading platforms, and wallet services.

The European Union plans to employ blockchain technology for verifying educational and professional credentials.

In accordance with the regulations, stablecoin issuers must adhere to certain security and risk mitigation standards, while cryptocurrency custodial services must guarantee adequate security and safety protocols to counter potential cyber and operational breakdowns.

The legislation also establishes a system to prevent manipulative practices, insider trading, and other market abuses in the cryptocurrency sector.

In the interim, crypto markets and operators in the U.S. are facing strain after the Securities and Exchange Commission launched regulatory action against crypto exchanges Binance and Coinbase.

The two exchanges are facing lawsuits on numerous grounds, including not registering as licensed brokers and offering securities that have not been registered.

Does SEC Chair Gary Gensler have the ultimate authority when it comes to crypto regulation?