EU lawmakers about to vote on crypto regulation bill, MiCA

European lawmakers are anticipated to vote on the Markets in Crypto Assets (MiCA) today, potentially initiating a new era of cryptocurrency regulation throughout the bloc. In addition, officials have debated the bill’s details, publicly expressing support for a specific licensing regime for digital asset service providers.

EU lawmakers on MiCA bill

The provision on fund transfers has garnered significant attention as it seeks to facilitate tracking suspicious digital asset activities, such as money laundering and terrorist financing, across the European Union. Transfers exceeding €1,000 ($1,097) from unregulated or self-hosted platforms will likely be restricted.

YouHodler CEO and co-founder Ilya Volkov said that adding regulatory clarity and clear rules would reduce risks for businesses and customers, especially in areas not covered by consumer protection rules.

If EU parliamentarians approve the landmark bill, MiCA will implement supervisory provisions for digital assets, consumer protections, and even environmental safeguards. The vote is expected around 8 am ET. Initially scheduled for February, the vote was postponed until April to allow industry-related firms additional preparation time.

The bill, introduced in 2020, should take effect 12 to 18 months after being added to the EU’s registry. The European Securities and Markets Authority was appointed the primary watchdog for digital assets falling outside normal financial regulatory bounds in a preliminary deal reached in October by the Union’s standing committee.

MiCA aims to establish a system requiring stablecoin issuers to maintain sufficient reserves to support redemptions, subtly referencing last year’s collapse of Terra’s algorithmic stablecoin, UST. Although some view the regulation as a means to limit crypto’s potential, others believe it could provide a model for competing jurisdictions, including the US.