European Council Passes MICA Crypto Regulation A turning point for the crypto landscape
Categories: Crypto News
European Council Passes MICA CryptoRegulation - A turning point for the crypto landscape
The EuropeanCouncil Passed Me The new bill, with the full name in Crypto-Assets(MiCA), has now been voted on through the European Council, but still needs topass an additional vote in the European Parliament next week. The next stepafter Mica is passed by the European Council will be to translate the full textinto more than 20 official languages of the European Union.
The billincludes an adaptation period of 12-18 months to help companies adjust to thenew rules. The bill aims to regulate all crypto-related activities, andin particular the issuance of cryptocurrencies, that take place within the EuropeanUnion. Specifically, the bill will bring more stringent oversight forcompanies that are defined as so-called crypto-asset service providers (CASPs).
Among therequirements that will be placed on CASPs under the new rules is the legalliability for companies if they lose their customers' cryptocurrency. The rulecovers all centralized companies in the crypto space, including walletproviders of 'hosted' or custodial wallets, but not so-called 'unhostedwallets', otherwise known as regular crypto wallets where private keys arecontrolled by users. Is performed.
The EuropeanUnion first reached an agreement on Mica in July this year. At the time,crypto industry representatives such as Rebecca Ratig, board member ofcrypto-friendly bank Silvergate, praised the effort to "provide clarityin the crypto space", while also noting that "more workremains to be done."