European Parliament Approves MiCA Law

The European Parliament has voted through landmark legislation on cryptocurrency. The Markets in Crypto Assets (MiCA) law passed with 517 votes in favor and 38 against, with 18 abstentions.

The MiCA legislation means that the EU will have a unified approach to crypto asset regulation across all 27 member states. The law focuses on companies known as crypto-asset service providers (CASPs), including firms operating trading platforms or marketing crypto assets.

The Parliament also passed a separate law, the Transfer of Funds regulation, with 529 in favor, 29 against and 14 abstentions. The regulation will require crypto operators to identify customers in a bid to curb money laundering.

The MiCA vote results. Image: European Commission

MiCA will not come into effect immediately; it will need to be approved by the European Council before officially becoming law. The rules for stablecoins will then come into force in July next year, while the rest will not be applicable until January 2025, with the EU’s securities regulator, the ESMA, responsible for the details of how the new rules will be applied.

Mark Jennings, head of European operations at crypto exchange Kraken, lauded MiCA as a “bespoke and pragmatic blueprint for cryptoassets to evolve within a regulatory perimeter.” He added that, “What once seemed a lofty legislative goal could soon become a universal standard for customer protection and business efficiency, if the EU can get the technical implementation of this framework right.”

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