On Thursday (April 20th) local time, the European Parliament passed the first EU-wide cryptocurrency regulation MiCA with 517 votes in favor and 38 votes against. This is also the world's first rule to comprehensively regulate the crypto asset market. Stefan Berger, a member of the European Parliament, said: "This regulation brings a competitive advantage to the EU. The regulatory transparency of the European crypto asset industry does not exist in the United States and other countries." Berger promoted the passage of MiCA in the European Parliament.
Marie de McGuinness, the European Commission's financial affairs commissioner, said on Wednesday that she expects MiCA to take effect in July next year after approval, and specific requirements will gradually take effect. For example, the rules governing stablecoins will apply from July 2024. McGuinness stressed: "I hope our rules can serve as a model for other countries." MiCA identifies and covers three types of crypto assets, namely asset-referenced tokens, electronic money tokens, and utility tokens.
The bill has four specific objectives:
1. Provide a legal framework for crypto assets that are not covered by existing EU financial services legislation;
2. Promote the development of crypto assets and the wider use of distributed ledger technology (DLT) by establishing a sound and transparent legal framework to support innovation;
3. Ensure appropriate consumer and investor protection and market integrity;
4. Considering that some crypto assets may become widely accepted, financial stability will be further enhanced.
MiCA has been in the works for three years since it was first proposed. In response to the rapid development of the crypto asset market in the EU and the relative legislative vacuum, the European Commission proposed a digital finance package in 2020, and the formulation of MiCA is part of the plan.
Overall, crypto industry executives welcomed the European legislation as better than no guidance. In contrast, the United States has recently taken the lead in taking enforcement actions against large companies rather than advancing industry-specific legislation, which has prompted large companies in the industry such as Coinbase, Circle and Binance to strengthen their operations in Europe. However, critics have pointed out that MiCA is outdated before it officially comes into effect, as it did little to prevent several recent high-profile crashes in cryptocurrencies. Some have called for an update to MiCA. It is worth mentioning that European Central Bank President Lagarde said in late November that MiCA may need to be expanded in future iterations, which she called "MiCA 2."
Regarding the implementation of MiCA in Europe, CZ said it is ready to adjust its business within 12-18 months to make it fully compliant
Approval is approval, but it will take some time for it to take effect. Europe has made its presence felt, but Hong Kong has made it clear that the policy will be implemented in June. This is different. One is approval, and the other is implementation. Therefore, in this regard, Hong Kong is determined to become a gathering place for Web pioneers and revitalize Hong Kong's reforms and changes in the world's financial center, which is unmatched by any region in the world.
