EU Parliament Approves of Markets in Crypto Assets & Fund Transfer Regulations

MiCA regulation will find its way to becoming effective in 2024 after its successful approval.

EU Parliament Approves of Markets in Crypto Assets & Fund Transfer Regulations

On Thursday, European lawmakers voted on the MiCA regulation. The results showed 517 in favor, 38 against, and 18 abstaining. The bill is to become the first major in-depth law regarding digital assets.

Additionally, on the same Thursday of April 20th, 2023, the European Parliament held a separate vote about the law of Transfer of Funds regulation, which was also approved by 529, while 29 were against it, and 14 were abstaining. This law will require crypto operators to identify their customers, thus preventing money laundering in the process.

Following the Wednesday debate about providing an operation license for crypto wallet providers and crypto trading and exchanging platforms, as well as for stablecoin providers to have a sufficient amount of assets available, most of the lawmakers openly supported the idea of the operation license and maintaining sufficient reserves.

European Commissioner for Financial Stability, Financial Services, and the Capital Markets Union, Mairead McGuinness tweeted about the vote:

The European Parliament released a statement, where Stefan Berger, a lawmaker who negotiated the law, talked about how it will bring the European Union “at the forefront of the token economy.” He also said:

"The European crypto-asset industry has regulatory clarity that does not exist in countries like the U.S. The sector that was damaged by the FTX collapse can regain trust.”

The European Securities Market Authority also tweeted about the vote, welcoming it and announcing its intentions to prepare secondary legislation.

"ESMA still warns consumers that investing in crypto assets is a risky endeavor with limited safeguards at this stage."

MiCA was first proposed in 2020 by the European Commission. To become law, the bill had to be approved by both, the EU Council and the parliament. The law will likely come into effect in June, more than a year after the law’s publication in the EU’s official journal.

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