European Union Publishes MiCA Legislation

The Markets in Crypto-Assets (MiCA) legislation of the European Union was published in the Official Journal of the European Union (OJEU) on June 9. This begins the countdown to the law’s implementation on December 30, 2024.

The regulations, which were signed into law on May 31 after their initial introduction in 2020, seek to establish a uniform regulatory framework for crypto assets across the member states of the European Union.

While the rules officially take effect within twenty days of publication, they will begin to be implemented on December 30, 2024, with specific provisions of the legislation taking effect six months earlier, on June 30, 2024.

The legislation has been lauded by both cryptocurrency service providers and proponents for its creation of a single market environment in Europe in terms of regulatory requirements and operating procedures.

The MiCA legislation includes registration and authorization requirements for cryptocurrency issuers, exchanges, and wallet providers as critical components.

According to the rules, stablecoin issuers must comply with security and risk mitigation requirements.

At the same time, cryptocurrency custody services must implement adequate security and safety measures to address potential cyber and operational malfunctions.

In addition, the legislation provides a framework for preventing market manipulation, insider trading, and market abuse in the cryptocurrency space.

In the interim, crypto markets and operators in the United States are under duress due to the Securities and Exchange Commission’s regulatory action against Binance and Coinbase.

Both exchanges are being sued on multiple counts, including offering unregistered securities and failing to register as licensed brokers.