MiCA Approved: All 27 EU States May Soon Create One Crypto Framework

First proposed in September 2020, the MiCA draft aims to create a uniform legal crypto framework for all of the 27 EU states.

MiCA Approved: All 27 EU States May Soon Create One Crypto Framework

Photo Credit: Unsplash/ Maximalfocus

After two years of consideration, ECON has finally approved the MiCA proposal

Highlights
  • MiCA could bring uniformity in crypto laws across 27 EU states
  • EU is trying to take a crypto-friendly approach
  • Other international bodies are also working on framing crypto under law
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Different regions around the world, either in clusters or individually, are working on binding the majorly independent crypto sector into legal frameworks in order to make the space safe for investors. In a fresh development, the European Parliament Committee on Economic and Monetary Affairs (ECON) has approved the MiCA legislation. First proposed in September 2020, the MiCA draft aims to create a uniform legal crypto framework for all of the 27 EU states.

After two years of consideration and deliberation, ECON has finally approved the MiCA proposal. Stefan Berger, the member of ECON has confirmed the development on Twitter.

The tuning and execution of the crypto policies could go into effect starting in 2024.

“It is important to ensure that the [European] Union's financial services legislation is fit for the digital age, and contributes to a future-ready economy that works for the people, including by enabling the use of innovative technologies,” MiCA has said.

The Markets in Crypto Assets (MiCA) framework largely revolves around consumer protection as well as prevention of market manipulation and financial crimes in the crypto sector.

In March this year, the ECON had refreshed the MiCA bill with adding a ‘minimum environmental sustainability standard' for cryptocurrencies to adhere to.

While the MiCA crypto laws are ready to go into effect, other organisations are also working to develop general laws to eradicate the risk factor from the digital assets sector.

The Organisation for Economic Cooperation and Development, or OECD, is planning to present a taxation framework around the crypto sector to the members of the G20 nations in the coming days.

Over the next months, the OECD will be taking forward work on the legal and operational instruments to facilitate the international exchange of information collected basis the CARF.

Several nations are also working on formulating laws around the crypto space to safeguard its investor community.

India, for instance, recently called for a global support to regulate crypto.

Indian finance minister Nirmala Sitharaman told the parliament on July 18, that the RBI favours a ban on cryptocurrencies.

The development came in the backdrop of tax laws around virtual digital assets went live in India, slashing trade volumes on Indian exchanges. At this point, India still awaits its laws on the crypto sector and Sitharaman has called for a global consensus.


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Further reading: Cryptocurrency, MiCA, EU, Crypto Laws
Radhika Parashar
Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More
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