The European Parliament was to hold a vote on MiCA, the cryptocurrency framework, in November. However, it has now emerged that the voting will be postponed to the beginning of next year. Here are the details…
European Parliament delays voting process for cryptocurrency framework to February 2023
The European Parliament was to make its final vote on Markets in Crypto-Assets (MiCA) at a general council session in November. But the draft needs to be translated into 24 EU languages. Because the text is technical and lengthy, adoption of the ordinance could be delayed to February 2023, according to a parliamentary spokesperson. The process does not end even after it has been accepted by the Parliament and the European Council. The text will be added to the EU Official Journal. This will mark the beginning of a long rule-making process.
MiCA legislation gives European regulators 12-18 months to take action on the cryptocurrency space. In other words, the legislators of European countries should come up with a regulation in accordance with the framework in question within a year and a half. In this process, Europe’s financial auditors and the European Committee will be monitored. Authorities will determine the final details about the implementation of the law.
The delay in the adoption of the last parliamentary vote delayed the implementation of the new rules outlined in MiCA. Considering that the voting will take place in February 2023; The rules will come into effect in February 2024 at the earliest. Thus, the rule-making and enforcement process will begin later than planned.
What cryptocurrencies does MiCA cover?
According to the text of MiCA, especially stablecoins are aimed in crypto money regulations. The bill aims to provide legal strictness for cryptocurrencies that are not covered by current EU financial services legislation. In addition, it is aimed that the crypto money trading platforms in the EU will act within the framework of certain rules. You can see some of the stablecoins coveted by European regulators on the occasion of MiCA in the list below:
Koindeks.com As we have also reported, the European Parliament focused on stablecoins, especially after the collapse of Terra (LUNA). Terra caused a massive market-wide crash when its algorithmic stablecoin UST lost the $1 peg. For this reason, the authorities turned to this area in order to reduce the victimization of users. On the other hand, non-fungible tokens (NFTs) were also in the focus of legislators. Even the MiCA bill has been updated due to the lack of NFTs and stablecoins.