Representatives of the governments of the EU member states signed the text of the Bill on Crypto Asset Markets (MiCA). Now the bill must be approved by the European Parliament.
The MiCA includes rules that apply to issuers of fiat crypto assets, issuers of stablecoins, and trading and custodial platforms. According to the document, virtual asset service providers must comply with rules aimed at protecting users and be liable in case of loss of investor funds.
In addition, cryptocurrency projects are required to warn users about the potential risks of investing in digital assets, and trading platforms must obtain a license from EU regulators. The activities of the largest virtual asset service providers will be regulated by the European Securities and Markets Authority (ESMA).
In addition, a separate bill on user identification requires companies providing custodial services to verify the identity of their customers to combat money laundering. The MiCA is due to be formally agreed by the European Parliament’s Economic Affairs Committee on 10 October. The bill is expected to come into force in 2024.
Recall that recently EU legislators supported the use of blockchain to identify tax evaders and tax the withdrawal of cryptocurrencies into fiat.
