By John Meyer, financial consultant. Eurasia Business News, March 15, 2022
A major step has just been taken for the future regulation of cryptoassets in Europe. The European Parliament’s Economic and Monetary Affairs Committee on March 14 adopted a draft of the MiCA (Markets in crypto-assets) regulation, paving the way for the text to enter into force by 2024. Negotiations with the Commission and the Council will be able to begin. The aim of these new rules is to establish a harmonised framework within the European Union on activities related to crypto-assets. Such a regional framework does not exist anywhere in the world so far.
MiCA is the sweet acronym of the draft Regulation on Crypto-Assets (“Markets in Crypto-Assets” in English) which was initiated by the European Commission on 24 September 2020 and whose final version was voted by the Economic Committee of the European Parliament yesterday afternoon.
An amendment, aimed at de facto banning the computer protocol, which is a mining system used in many blockchains (proof of work system for bitcoin, ethereum…) was finally rejected by MPs, to the great relief of the ecosystem of crypto-assets. MEPs in the European Parliament’s Economic and Monetary Affairs Committee voted 31 against the amendment to de facto ban a mining system used in many blockchains, with 23 abstentions and 4 in support of this amendment.
The EU may have taken stock of what is at stake, but it is still a difficult administrative machine to activate. The draft MiCA regulation will now be negotiated in the framework of “trilogues” between the European Commission, the European Parliament and the Council. The final text, on which these three institutions will agree, will therefore only enter into force in several months, with a deadline of 18 months for implementation.
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