The MiCA legislation, which aims to bind the crypto and digital asset industry into a solid framework for all members of the European Union (EU), will be submitted for a final vote later this year. The reason for this delay is that the 400-page document has to be translated into 24 official languages. It may take up to 18 months for the European Securities and Markets Authority and the European Banking Authority to develop technical standards for the MiCA Act.
“MiCA is being submitted for a plenary vote in April, and as far as I know, the delay is technical, caused by translation issues,” a CryptoPotato report quoted people familiar with the matter as saying.
The Markets in Crypto Assets (MiCA) framework revolves largely around consumer protection and preventing market manipulation and financial crimes in the crypto sector.
The MiCA Act is designed to prevent insider trading, unlawful disclosure of inside information and market manipulation related to crypto assets.
In October last year, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) approved the MiCA legislation.
Wieder einen Schritt weiter…Das Ergebnis der Trilog-Verhandlung zu #Mica was accepted by ECON-Ausschuss. Gute Nachrichten :+1::skin-tone-3: https://t.co/z73pkZMYvO
— Stefan Berger (@DrStefanBerger) October 10, 2022
In addition to the postponement of MiCA enforcement, the Transfer of Funds Regulation (TFR) will now also be submitted to the EU Parliament in April. The TFR rule will require all crypto players to religiously collect KYC data from both senders and recipients.
The MiCA rule is one of the most comprehensive set of crypto rules formulated to date and will be implemented in multiple countries.
Crypto transactions are largely anonymous and can process instant cross-border payments without going through a broker or centralized agency. Governments around the world are concerned that the use of cryptocurrency could destabilize existing financial workings and make it easy for criminals to launder money and engage in other illegal activities.
Following the lead of the EU, members of the G20 countries are now working under the presidency of India to create crypto regulations that would work on an international level. Before the MiCA laws go into effect sometime around 2024-2025, EU member states have begun releasing crypto tax laws and inviting crypto players to operate from their territories.
For example, PayPal entered the EU by offering crypto-related services in Luxembourg from December 2022.
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