EU starts countdown to crypto legislation, adds MICA to official journal

EU Markets in Crypto-Assets (MiCA) Law on June 9th published In Official Journal of the European Union (OJEU). This starts the countdown for the coming into force of the law from December 30, 2024.

The rules, signed into law on May 31 after first being introduced in 2020, aim to create a harmonized regulatory framework for crypto assets among EU member states.

While the rules officially go into effect within 20 days of publication, the rules will come into force on December 30, 2024, with parts of the law coming into effect six months earlier, on June 30, 2024.

Cryptocurrency service providers and supporters alike have lauded the law for creating a single market environment across Europe in terms of regulatory requirements and operating procedures.

Key components of the MiCA legislation include registration and authorization requirements for issuers of cryptocurrencies, exchanges and wallet providers.

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According to the regulations, stablecoin issuers must meet certain security and risk mitigation requirements, while cryptocurrency custody services must ensure adequate security and safety measures to address potential cyber security and operational failures.

The law also provides a framework to prevent market abuse, insider trading and manipulative behavior in the cryptocurrency space.

Meanwhile, crypto markets and operators in the United States are coming under pressure after the Securities and Exchange Commission initiated regulatory action against crypto exchanges Binance and Coinbase.

Both the exchanges are being sued on a number of counts, including failure to register as licensed brokers and offering unregistered securities.

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