The European Union has officially enacted the Markets in Crypto-Assets (MiCA) bill, following its final approval by finance ministers.
On May 31, Peter Kullgren, Sweden’s Minister for Rural Affairs, and Roberta Metsola, President of the European Parliament, signed the regulatory framework for cryptocurrencies into law. This milestone comes three years after the European Commission initially introduced the legislation. Throughout this period, the MiCA framework underwent discussions and debates within the EU legislative bodies before finally receiving approval in 2023.
The primary objective of MiCA is to establish a consistent regulatory structure for crypto assets across EU member states. With the signing ceremony completed, the framework is anticipated to come into effect upon its publication in the Official Journal of the European Union. Most of MiCA’s regulations concerning crypto firms are expected to be implemented sometime in 2024.
Due to its initial drafting in 2020, some EU lawmakers have suggested the need for a more comprehensive framework in light of the 2022 crypto market crash and notable bankruptcies such as FTX, BlockFi, and Celsius. European Central Bank President Christine Lagarde has put forward a proposal for “MiCA II,” which would build upon the foundations established by the first framework.