The European Union’s proposed crypto law, the Markets in Crypto Assets (MiCA) regulation, has been published in its official journal. This move marks a significant milestone in the EU’s efforts to regulate the crypto industry and protect investors.
A Significant Advancement In Effective Implementation
The publication of the MiCA rules in the Official Journal of the European Union (OJEU) marks the beginning of the countdown towards effective crypto regulation within the EU bloc. The comprehensive legislation, published after consultation with related laws, mandates that crypto wallet providers establish the identity of their customers when they make fund transfers.
Furthermore, this law stipulates the operations guidelines for crypto firms, including exchanges and wallet providers, throughout the bloc. It also imposes new governance and financial obligations on stablecoin issuers.
Crypto companies in the United States face high uncertainty due to the recent actions taken by the Securities and Exchange Commission against Binance, Coinbase and some other crypto entities. The US SEC claims that the tokens traded on these platforms are regulated financial instruments.
The publication of the MiCA regulation in the official EU journal indicates the successful passing of a bill into the EU’s statute book. These laws should become effective in 20 days, while their provisions will be live from December 30, 2024.
However, parts of it will become effective by June 30, 2024. It is worth noting that the EU Commission established these laws’ framework last June.
Unfortunately, there were delays to the official approval process because the text hasn’t been translated into the EU’s numerous official languages. But these translations have been completed, and the MiCA regulation will become effective by December 30, 2024.
Thus, crypto service providers have ample time to prepare for the new rules and obtain the necessary licenses. However, it’s important to note that the regulation will have far-reaching implications for the industry.
By introducing clear rules and requirements, the law will help to protect investors and promote the growth of a trusted and reputable crypto ecosystem within the EU.
Ukraine’s Apex Bank Reveals Crypto Regulatory Plans
Meanwhile, the National Bank of Ukraine (NBU) has outlined its plans to regulate its local crypto industry in a manner consistent with the standards of the European Union. The NBU’s vision for crypto regulations reflects a desire to align with EU models.
According to a popular local news outlet report, the central bank seeks to bring the crypto assets market in line with European standards. Earlier this year, the NBU initiated a crypto regulatory plan in collaboration with the National Commission on Securities and the Stock Market, the Ministry of Digital Finance, and a group of MPs.
They aim to develop regulations that comply with the EU’s MiCA legislation. The NBU also aimed for a balance between protecting consumers’ interests without destroying or obstructing the growth of the nascent industry.
Even though the bank desired that Ukriane’s crypto regulations should be similar to the MiCA, it also considered the unique characteristics of the nation’s legal and financial ecosystem. Additionally, the bank emphasized the significance of transparency and sought the protection of the rights of all participants in the crypto market.
Accordingly, the NBU announced its intention to collaborate with other regulators in developing these regulations. Arsen Makarchuk, a top-level executive with the NBU, believes that ensuring that the Ukraine financial ecosystem can enable crypto market growth is crucial.
Makarchuk opined this goal is achievable by creating specific and transparent regulations governing the virtual assets market. However, such laws must benefit all parties, including service providers and clients.
Makarchuk added: “The NBU and the National Commission for Securities and the Stock Market will be responsible for regulating cryptocurrencies.” This move marks a shift from Ukraine’s previous approach of having a relatively lenient attitude towards cryptocurrency regulation.
