It’s official. European members of parliament have overwhelmingly voted in support with 517 for (and 38 against) MiCA.
MiCA, or the Markets in Crypto-Assets Regulation, is now a regulatory framework for crypto assets in the European Union (EU). The goal of MiCA is to establish a harmonized regulatory framework for crypto assets across the EU and to provide legal certainty and consumer protection for users of these assets. Not something the US or UK have. MiCA regulates various crypto assets, including cryptocurrencies, utility tokens, and stablecoins.
The regulation includes requirements for issuers of these assets to provide detailed information to investors, as well as rules for custody, governance, and trading of these assets. MiCA’s new regulatory framework for crypto asset service providers, such as exchanges and wallet providers, ensures that they meet certain standards of conduct and consumer protection. This is something the SEC, who is supposed to establish rules that regulate the securities market, has failed to do.
In terms of positioning Europe vs America in crypto innovation, MiCA has been seen by some as a significant development for the European crypto industry. Experts have noted that the regulatory clarity provided by MiCA could make Europe a more attractive destination for crypto-related businesses and investment, particularly if other countries around the world begin to follow the EU’s lead in regulating crypto assets.
So while MiCA may position Europe as a leader in crypto regulation, it remains to be seen how this will translate into broader innovation and adoption of crypto assets in the region.