EU Approves MiCA Regulation: What It Means for Crypto Companies and Consumers
On April 20, the European Union approved the Markets in Crypto Assets (MiCA) regulation with 517 votes in favor and 38 against.
The finalization of the regulation will be on May 16 after the formal Council vote. MiCA mandates cryptocurrency companies to register in any EU member state, with the European Securities and Markets Authority and the European Banking Authority overseeing the compliance of crypto firms.
A member of the European Parliament, Chris MacManus, supported the regulation for its ability to bring transparency, protect consumers, and aid financial stability.
Disclosure of the environmental impact of crypto assets to customers is also required under the new rules. Commissioner for Financial Services Mairead McGuinness stated that safeguards are in place to prevent some of the practices that led certain crypto-asset operators to collapse in recent months.
Changpeng Zhao, the CEO of Binance, expressed his approval of the decision, stating that there are now explicit guidelines in place for cryptocurrency exchanges to operate within the European Union.
He also added that his company is prepared to adapt its business practices to fully comply with the regulations within the next 12-18 months.
The bill had previously been delayed after receiving a preliminary 28-1 member vote in the European Parliament Committee on Economic and Monetary Affairs.