The Landmark MiCA (Markets in Crypto-Assets) Regulation Final Vote by EU Delayed Until April
The final vote on the European Union's Markets in Crypto-Assets (MiCA) regulation has been delayed from February to April 2023, due to difficulties in translating the nearly 400-page document into the EU's 24 official languages. Despite the recent delay, MiCA will still pass its final vote when it takes place and is expected to be implemented in 2024, as previously planned.
The regulation package has been delayed for the second time, previously being pushed back from December 2022. Despite the finalization of the full text of the regulation in October 2022, delays are not uncommon because of the requirement for EU laws and regulations to be translated into all official languages of the blocks.
How Is MiCA Setting the Bar High for Digital Assets?
As a regulatory leader in the digital asset sphere, the EU has set the standard with its introduction of MiCA. This is the first major effort by a regulatory or legislative body to establish a comprehensive set of regulations for governing and enforcing laws within the virtual asset ecosystem. The development of MiCA involved over two years of extensive discussions and debates.
Upon approval, which is highly likely, the landmark regulation will introduce a unified approach to digital assets throughout the EU and grant the 24 member countries 18 months to implement the rules. Switzerland and other countries trading with EU member states must also adhere to the regulation.
The regulatory package includes new classifications for various digital assets and corresponding regulatory frameworks. Under the new rules, Swiss companies wishing to issue digital assets or coins must publish a white paper detailing information about the project, including potential risks. Another important aspect will be the imposition of reserve requirements on stablecoin issuers and the provision of evidence of these funds to prevent a repeat of the TerraUSD collapse that occurred in May, 2022.
The proposed regulations for digital assets will set standards for the organization, management, and oversight of companies issuing tokenized assets. It will also establish guidelines for transparency and disclosure in the issuance and trading of cryptocurrency.