European Parliament Approves MiCA in Landslide Vote

BRUSSELS, BE – The European Parliament has approved the Markets in Crypto Assets (MiCA) Regulation in a landslide vote late Wednesday. Members of the European Parliament  (MEPs) voted 529 in favor, 29 against, and 14 abstained. MiCA aims to protect consumers and ensure financial stability in the digital assets market.

Parliament has endorsed the first EU rules to trace crypto-asset transfers, prevent money laundering, as well as common rules on supervision and customer protection.

Press release: https://t.co/t105fHevXz pic.twitter.com/UycXJwDJRF

— European Parliament (@Europarl_EN) April 20, 2023

The law requires exchanges and wallet providers to register for licenses and for stablecoin issuers to hold appropriate reserves. MiCA will take effect in mid-2024 with a 12-18 month transition starting from June. 

Crypto exchange Coinbase tweeted that the “adoption of [MiCA] is a pivotal moment for crypto regulation.” Binance CEO Chengpang Zhao tweeted, “There are now clear rules of the game for crypto exchanges to operate in the EU.”

Some questions still linger about how companies will prepare for the law, and EU agencies will have to draft and consult with industry experts on implementing underlying measures. Individual national regulators will police the law in the bloc’s 27 member nations which have raised concerns about regulatory arbitrage. However, if the EU gets the legal framework right, MiCA will become a global precedent for consumer protection and business efficiency.