EU Moved Proposed Vote On MiCA Crypto Regulations To February
According to reports, the European Union (EU) legislators are not ready to kickstart the vote on the Market in Crypto Assets (MiCA) until February next year.
The latest delay in the vote to usher in MiCA might hinder the implementation of the long-awaited comprehensive crypto regulations for the EU region. MiCA will be a comprehensive licensing system for digital asset enterprises operating within all EU member states.
As a result of the bulk and complexity of the crypto legislative document, the previous plan was for the vote to take place during the EU parliament plenary session in December. However, the initial plan is now scrapped, according to an insider report by CoinDesk.
MiCA’s framework is designed to prevent a repeat of what led to the collapse of the Terra USD stablecoin. Thus, in June, the team developed a reserve mechanism with the full text of the regulations released last month.
Meanwhile, before MiCA is considered a legally binding legislation, it must get approval from the EU lawmakers and the governments that make up the EU governing council.
More Languages for MiCA Law
Due to the legal requirements needed to comply with the EU judicial system, the MiCA bill is expected to be drafted into all 24 official languages of the EU member states. Currently, the proposed crypto regulations are in English.
Furthermore, crypto exchanges have already considered the provisions of the digital asset law to obtain operational approval from the respective national agencies. Also included in the legislation is that digital asset service providers must apply for approval not later than 18 months after the final guidelines are published in the Commission’s Official Journal.
It is worth noting that this was planned to occur in the spring of 2023, but it appears that it will be further delayed. In August, Peter Kerstens, a policy adviser to the European Commission (EC), noted that once the MiCA bill is implemented, it will usher in multiple changes to the crypto industry.
Kerstens added that MiCA would introduce strict requirements to avoid the same fate that has befallen the Terra ecosystem.
The MiCA Bill And Global Crypto Adoption
Following the proposal to adopt the MiCA bill as the guiding regulation for the European crypto space, many wonder if the move would impact the broader digital asset market. However, experts agreed that MiCA would signal a major shift in how crypto regulations are approached within the EU bloc.
Additionally, it represents another major milestone for the EU concerning how it intends to regulate the highly volatile industry. With the MiCA bill, the EU will likely be at the forefront of having standard crypto guidelines.
As expected, others believe the new law is oppressive and can stifle the crypto industry’s growth within and outside of Europe. The industry is evolving into an innovative and dynamic ecosystem, which calls for an effective and robust regulatory system.
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