Council of the EU, one of the European Union’s legislative bodies, has approved the proposed regulatory framework for the European crypto space. It’s now up to European lawmakers to approve the Markets in Crypto Assets package before its final adoption.
Comprehensive Crypto Regulation moves closer to EU adoption
According to the Council of the European Union, the Committee of Permanent Representatives has approved the final version of the Markets in Crypto Assets legislation (MiCA), according to a document released by the Council of the European Union following a meeting held on October 5. It is comprised of representatives from EU member states based in Brussels.
COREPER is responsible for preparing the agendas of ministerial Council meetings and has the authority to make some procedural decisions. Information has been sent to COREPER by the European Parliament regarding the endorsement. This information will be forwarded to ECON, which is due to meet and vote next Wednesday.
In a letter, COREPER Chair Edita Hrda confirms that “should the European Union adopt its position at first reading… the Council would, in accordance with Article 294, paragraph 4 of the Treaty, approve the European Parliament’s position and the act shall be adopted in the wording which corresponds to the European Parliament’s position.”
The approval of the draft MiCA package in committee comes after the three main institutions in EU’s complex legislative process – the Parliament, Council and Commission – reached consensus earlier this year on the text of the sweeping proposal to regulate the bloc’s crypto economy. A set of rules against money laundering was also adopted by them for transactions that involve crypto assets.
MiCA should come into force following the completion of the approval process and its publication in the European Union’s Official Journal, expected towards the end of 2022. Many of the provisions in MiCA will be effective by 2023, or mid-2024.
It aims to regulate activities of providers and issuers crypto assets, as well as protect investors and customers throughout the Union. There have been previous attempts at revising it in parliament, which included a controversial proposal that would ban services to cryptocurrencies relying upon energy-intensive mining techniques like Bitcoin. This triggered reactions from the crypto industry as well as the community on the Old Continent.
Members of the European Parliament demanded that crypto assets be taxed in a uniform manner across member states this week. With the vote of large numbers of European lawmakers, a non-binding resolution was also adopted. It suggested that blockchain technology be used to fight tax evasion as well as to provide simplified tax treatment for small and occasional crypto traders.
What effects on Europe’s crypto space do you expect from the MiCA legislation? Comment below with your opinions.
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