EU’s Groundbreaking Crypto Rules: A Look at MiCA’s Rollout and Future Developments
The European Union will enforce its groundbreaking crypto regulations on Thursday, concluding two and a half years of legislating.
However, financial policymakers are already urging the introduction of a second version of the law in the future. Markets in Crypto Assets (MiCA), published in the EU’s official journal on June 9, will be effective starting June 29, prompting firms to comply with its requirements. Some regulations on stablecoins will enforce after a year, while the remaining provisions will be in use by the end of 2024.
Bank of France Governor François Villeroy de Galhau and European Central Bank President Christine Lagarde have advocated for ‘MiCA II’ to cover blind spots like decentralized finance (DeFi) and lending. The EU Commission does not start working on MiCA 2, but reports on current gaps in legislation will produce after 18 months.
The discussion surrounding the second version of MiCA includes potential inclusions such as non-fungible tokens (NFTs) and specialized areas like staking and on-chain lending. The crypto industry welcomes regulation, but there is a need to balance new regulations with the industry’s ability to adapt and innovate in response to emerging technologies.
Clever Robot News Desk 28th June 2023