December 8, 2022

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EU Parliament votes on landmark MiCA crypto-asset market regulation bill

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EU Parliament votes on landmark MiCA crypto-asset market regulation bill



 

EU Parliament votes on landmark MiCA crypto-asset market regulation bill.

 

The “Encrypted Assets Market Regulation Act” (hereinafter referred to as MiCA) promoted by EU parliamentarians is one step closer to formal legislation. 

On October 10, the European Parliament passed the landmark MiCA bill by a one-sided vote of 28 to 1.

If passed in the next vote, it will further regulate digital assets in the EU region and impose stricter regulatory rules on related crypto companies.

EU Parliament votes on landmark MiCA crypto-asset market regulation bill

(From: European Parliament )

 

The MiCA Act requires organizations that issue cryptocurrencies to provide a “cryptoasset white paper” that includes details about the project.

 

It also requires stablecoin issuers to meet capital requirements and limit the number of tokens that can be issued if the entity does not plan in euros, or other fiat currencies in EU member states.

 

In addition, MiCA wants to regulate the cryptocurrency mining industry, with the new bill requiring large “crypto asset service providers” to disclose their energy consumption.

 

As an energy-intensive business, the carbon footprint of cryptocurrencies represented by BTC often exceeds the overall consumption of a country.

 

Brian Fyre, an expert on NFTs and securities law and a law professor at the University of Kentucky, added that the EU could also regulate “non-fungible tokens” issued on the blockchain.

 

EU lawmakers have been discussing MiCA for more than two years. In the words of Member of the European Parliament (MEP) Stefan Berger — the economic union is trying to regulate the savage crypto industry.

 

Finally, the European Parliament today also passed an anti-money laundering bill requiring the disclosure of payee and payer data during the transfer of crypto assets.

 

Overall, the bill is largely in line with MiCA’s intentions to require crypto asset service providers to work hard to cooperate with authorities in providing required information during anti-money laundering and combating terrorist financing investigations.

 

The European Parliament is scheduled to hold a final vote on MiCA legislation later this month.



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