For the second time in two months, the European Union (EU) has suspended the long-awaited vote on the Market in Crypto Assets (MiCA) regulations. The set of crypto guidelines was initially slated for a bloc vote in November 2022, which was moved to February 2023, and again pushed to April 2023.
Another MiCA Delay
Reports indicate that the latest delay is a result of technical issues which required the translation of the 400-page document into the 24 official languages of the region. As a legal document, the EU decision-makers believe that MiCA which was drafted in English, must be translated into all official languages of the bloc to have a broader impact.
Furthermore, the first delay in MiCA’s vote was in November 2022, which led to the rescheduling to February 2023, also caused by the same language issues. Meanwhile, the latest delay means that the bloc’s financial regulators must wait for a more extended period before drafting their implementation guidelines for legislation.
Once the MiCA regulation is officially approved, financial regulators will have 12 to 18 months to develop their technical standards for further implementation. Recall that the European parliamentary committee approved the MiCA laws in October 2022, close to two years after its introduction in September 2020.
Also read:The second delay comes when there is a growing clamor for adopting the legislation amid the crypto market crisis caused by the FTX collapse. According to Stefan Berger, a European Parliament economic committee member, the FTX crash is akin to the “Lehman Brothers” period, which must be avoided, which is why regulations like MiCA are necessary.
Berger believes that the FTX/Alameda fiasco has cost the industry trust issues, which could have been prevented if the crypto space had strong regulations to keep service providers in check. The EU policymakers aim to use MiCA to create standard regulations by harmonizing rules for the digital assets ecosystem within the EU, thus providing legal clarity for all assets.
A Call For Global Crypto Regulation Standards
In another development, a US CFTC commissioner, Caroline Pham, recently called on financial regulators to provide regulatory clarity for digital assets in 2023. In a recent Bloomberg interview, the commissioner disclosed that there are ongoing discussions with key crypto players on how best to regulate the industry.
The US government official added that there are ongoing global efforts to ensure the establishment of standards for the industry. Pham revealed that she has attended over 75 meetings with several players to discuss the regulatory direction of the virtual assets industry.
In addition, the CFTC head noted that more top-level discussions are taking place outside the United States on the type of global standards authorities should apply. Commenting on the legal flaws within the industry, like the current Gemini and Genesis issue, the commissioner noted that authorities must consider the best way to provide clarity for industry players so they can comply.
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