EU Council Grants Final Approval to MiCA Crypto Regulatory Framework

• The final endorsement facilitates the establishment of uniform regulation across the EU.
• Finance Ministers from EU member states cast 27 votes in favor.

On May 16, members of the Council of the European Union expressed their support for the Markets in Crypto-Assets (MiCA) legislation, granting it final endorsement and enabling it to serve as a uniform regulation throughout the EU.

The approval of the MiCA bill and the amendment of other regulations and directives in line with the new legislation received 27 affirmative votes from Finance Ministers representing EU member states.

Harmonized Regulation Across the EU

The MiCA, which has already been approved by the EU’s member states and the European Parliament, requires cryptocurrency enterprises to seek authorization from the EU to offer services to customers residing within its borders. Additionally, they must comply with regulations designed to prevent money laundering (AML) and the financing of extremist organizations.

The EU parliament simultaneously passed MiCA along with two other legislative measures, which include restrictions on information related to fund transfers and specific crypto-assets.

Considering the global nature of crypto assets, the Council’s official statement indicates that the new crypto legislation will introduce a “harmonized regulatory framework” within the European Union. This represents a change from the current landscape, which has varying national legislation among member states.

The EU Council noted that the approval “addresses a gap in existing EU law” by ensuring that new digital financial instruments are encompassed by EU financial regulations and risk management protocols, while also ensuring that the legal framework does not hinder their utilization.

On April 20, the European Parliament officially adopted the MiCA law, paving the way for the Council to provide its final approval.