By
Chimamanda U. Martha
April 24th, 2024
The crypto bill was accepted after negotiations among the European Union Council, the European Parliament, and the European Commission.
The European Union is indeed making waves in its effort to regulate crypto and the entire industry. The lawmakers have taken the whole continent further in controlling the crypto industry. Finally, the European Parliament Committee on Economic and Monetary Affairs, or ECON, has signed off the Markets in Crypto Assets (MiCA) Framework.
The European Commission introduced the MiCA proposal in September 2020. Since its introduction, EU lawmakers have been debating on it and its power over the crypto space. The bill seeks explicit information about crypto projects. According to the proposal, crypto issuers must publish a “crypto-asset white paper” that reveals information about their projects. Also, it seeks that stablecoin companies meet capital requirements. As such, there would be limitations in the number of tokens these entities can issue if there are not denominated euros or other currencies within the EU member states.
European Union Lawmakers Passes Crypto Bill
After about two years of back and forth, Stefan Berger, an ECON member, confirmed the approval of the MiCA legislation in a tweet posted on the 10th of October. The crypto bill was accepted after negotiations among the European Union Council, the European Parliament, and the European Commission. Interestingly, members of the committee passed the legislation in a vote of 28-1, 28 in favor, and 1 against. A final vote is coming during a full European Parliament session.
After checking all boxes, the crypto policies may be implemented in 2024. This is possible after legal checks, the publication of the EU journal, and other necessary processes. Prior to the vote, the MiCA text released on the 5th of October states:
“It is important to ensure that the Union’s financial services legislation is fit for the digital age and contributes to a future-ready economy that works for the people, including by enabling the use of innovative technologies. The Union has a stated and confirmed policy interest in developing and promoting the uptake of transformative technologies in the financial sector, including distributed ledger technology (DLT).”
Separately, the MiCA, which now has the European Union’s support, seeks the regulation of crypto mining. Additionally, it requests crypto asset service providers to disclose their energy consumption. This would shed more light on the different research that has revealed the enormous amount of energy cryptos like Bitcoin consume. Studies have shown that Bitcoin’s energy use surpasses that of some countries.
After the MiCA vote, the EU Parliament also approved an anti-money laundering bill. The proposal focuses on the Transfer of Funds Regulation which seeks to ensure compliance standards for crypto assets.