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The publication of the EU Cryptocurrency Law MiCA in the Official Journal signals the start of a formal process to enact licensing, stablecoin and anti-money laundering regulations by the end of 2024.
The European Union legislation on markets for crypto-currency assets (MiCA) was published on June 9 in the Official Journal of the European Union (OJEU). The move kicks off the countdown to the law coming into effect on December 30, 2024.
The bill was signed on May 31, after it was first introduced in 2020, with the aim of creating a unified regulatory framework for cryptocurrency assets in the member states of the European Union.
Although the rules officially take effect within 20 days, they will begin to apply on December 30, 2024, with some pieces of legislation going into effect six months earlier on June 30, 2024.
The law has been endorsed by both cryptocurrency service providers and supporters for creating a unified market environment across Europe in terms of regulatory requirements and operational procedures.
Key components of MiCA legislation include registration and authorization requirements for cryptocurrency issuers, exchanges, and wallet providers.
Related: EU to use blockchain to verify educational and professional documents
Under the regulations, stablecoin issuers must meet certain security and risk mitigation requirements, while cryptocurrency custody services must provide sufficient security and protection measures to mitigate potential cybersecurity and operational disruptions.
The legislation also provides a framework to prevent market abuse, insider trading, and manipulative behavior in the cryptocurrency space.
Meanwhile, crypto markets and operators in the United States are under pressure after the Securities and Exchange Commission initiated regulatory action against exchanges Binance and Coinbase.
Both exchanges are being sued on multiple counts, including refusing to register as licensed brokers and offering unregistered securities.