On June 9 it public in the Official Journal of the European Union (OJEU) the legislation of the European Union Markets in Crypto-Assets (MiCA). This activates the countdown for the law to enter into force as of December 30, 2024.
The normative, signed into law on May 31 after being first introduced in 2020, aims to create a coherent regulatory framework for crypto assets among the Member States of the European Union.
Although the rules officially enter into force 20 days after their publication, they will begin to apply on December 30, 2024, with some parts of the legislation entering into force six months earlier, on June 30, 2024.
Both cryptocurrency service providers and their advocates have praised the legislation for creating a single market environment across Europe in terms of regulatory requirements and operational procedures.
The main components of the MiCA legislation include the Registration and authorization requirements for cryptocurrency issuers, exchanges, and wallet providers.
According to the regulations, stablecoin issuers must meet certain security and risk mitigation requirements, while cryptocurrency custody services must ensure sufficient security and protection measures to deal with potential cybersecurity and operational failures.
The legislation also provides a framework to prevent market abuse, insider trading and manipulative behavior in the cryptocurrency space.
Meanwhile, US cryptocurrency markets and traders are under pressure after the Securities and Exchange Commission initiated regulatory action against cryptocurrency exchanges Binance and Coinbase.
Both exchanges are being sued for multiple charges, including failing to register as licensed brokers and offering unregistered securities.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.
