MiCA, the European Union’s (EU) cryptocurrency regulation bill, was approved by 517 votes today. Now, it is expected to pass the approval of the Council of Europe. The bill, which proposes harmonized rules for cryptocurrencies, also received support from Binance CEO CZ. Here are the descriptions…
Binance CEO comments on Europe’s hot MiCA bill
cryptocoin.com In this article, we have included the regulations that are expected to enter into force in the EU region together with MiCA. The bill, which aims to establish a standard regulation to create harmonized rules for cryptocurrencies, has not yet touched the areas of DeFi, NFT, lending and staking.
The legislation, known as MiCA, was passed in the European Parliament today after a series of delays. Binance CEO CZ, who has been under the scrutiny of US regulators recently, announced that they will act in line with MiCA…
The European Parliament voted for MiCA to be implemented.
This means one of the world’s largest markets is introducing tailored regulations for crypto to protect users and support innovation.
The fine details will matter, but overall we think this is a pragmatic solution to…
— CZ 🔶 Binance (@cz_binance) April 20, 2023
CZ wrote on Twitter shortly after MiCA’s rapporteur and Member of the European Parliament, Stefan Berger, announced that the bill had been approved:
The European Parliament voted on the implementation of MiCA. The approval means that one of the world’s largest markets has introduced special regulations for crypto to protect users and support innovation. The finer details will be important, but overall we think this is a pragmatic solution to the challenges we face collectively.
“We are ready to adapt”
CZ later stated that with the approved bill, they will act in line with MiCA in their activities in the EU. The new rules are scheduled to be published in the EU’s official journal in June and will be implemented in 2024. Binance CEO, as the first crypto representative to comment on the hot development, says they will act according to the new rules:
There are now clear rules of the game for crypto exchanges to operate in the EU. We are ready to make adjustments to our operations over the next 12-18 months to be in a fully compliant position.
The main objectives of the MiCA bill
MiCA is a regulation presented as the proposal of the European Union (EU) regarding the regulation of the cryptocurrency market. It was first published on 24 September 2020 and is currently awaiting approval by the Council of Europe. Among the regulations that MiCA will bring are the following:
- Cryptocurrency definition: MiCA will define cryptocurrencies and determine whether they will be defined in EU countries.
- Authorization and registration: Cryptocurrency exchanges (VASPs) will be subject to authorization and registration processes in the EU.
- Liberalization and disclosure: VASPs will have to provide adequate information before offering crypto-related products to their users.
- Obligations of cryptocurrency producers: Companies authorized to issue cryptocurrencies will have to register and register with an appropriate regulatory body in EU countries before issuing them within the EU.
- Cryptocurrency custody: Crypto service providers will have to act in accordance with the regulations required to securely store their clients’ assets.
- Powers of regulatory authorities: MiCA will ensure that regulatory authorities in EU countries have the necessary powers to regulate the markets of cryptocurrencies.
- Penalties and sanctions: EU countries will be able to impose penalties and sanctions if VASPs do not comply with MiCA regulations.
Conclusion
These regulations aim to make cryptocurrency markets in EU countries more secure and transparent. However, due to the fact that the regulation has not yet come into force, the full effects of MiCA are yet to be revealed.
