European lawmakers are expected to vote on the Markets in Crypto Assets (MiCA) today, potentially marking the beginning of a new chapter in cryptocurrency regulation across the bloc. Officials have engaged in extensive discussions on the bill, voicing their support for a specialized licensing system for digital asset service providers.
The provision concerning fund transfers has drawn particular interest as it aims to streamline the tracking of suspicious digital asset activities, such as money laundering and terrorist financing, throughout the European Union. Transfers exceeding €1,000 ($1,097) from unregulated or self-hosted platforms are likely to face restrictions.
YouHodler CEO and co-founder Ilya Volkov commented that introducing regulatory clarity and explicit rules would mitigate risks for both businesses and customers, particularly in areas not covered by consumer protection regulations.
A new chapter for European crypto regulation as lawmakers vote on MiCA
If EU parliamentarians pass the landmark bill, MiCA will introduce supervisory measures for digital assets, consumer protections, and even environmental safeguards. The vote is scheduled for around 8 am ET. Initially planned for February, the vote was delayed until April to grant industry-related companies more time to prepare.
The bill, first proposed in 2020, is expected to come into effect 12 to 18 months after being added to the EU’s registry. In a preliminary agreement reached in October, the European Securities and Markets Authority was designated as the primary overseer for digital assets that fall outside the scope of traditional financial regulations.
MiCA seeks to create a system where stablecoin issuers are required to maintain adequate reserves for redemptions, alluding to last year’s collapse of Terra’s algorithmic stablecoin, UST. While some see the regulation as an attempt to curb crypto’s potential, others believe it could serve as a model for other jurisdictions, including the US.