The European Union (EU) has again postponed the vote on a new crypto law due to “technical reasons,” a source says in a comment Coindesk. The Markets in Crypto Assets Regulation (MiCA) law will provide a framework for the crypto industry and is seen as the new standard for crypto law worldwide.
Crypto in the EU
The EU has been working for a long time on legislation that will apply to the entire union. MiCA will provide more clarity to crypto companies and protect consumers. For example, requirements are placed on stablecoins to maintain a certain amount of reserves. In addition, a licensing regime will be introduced for companies wishing to operate in the EU.
The legislation has already gone through a number of processes and now awaits the vote in plenary. Unfortunately, it is now postponed again. The legal text must be translated into all 27 languages of the EU. “MiCA has been submitted for vote by the plenary in April and to my knowledge,” a source told the crypto news website.
When will the European crypto law come into force?
The vote was supposed to take place next month. In November last year, however, it was read in the crypto news that the vote would be postponed to February 2023. So that is now being stuck for another two months.
But once the law is approved in April, it will still be a while before it actually takes effect. After the vote, MiCA will be at the Official Journal of the European Union added. This is followed by a period of 12 to 18 months in which new regulations must be developed on the basis of the new law.
The European crypto law will therefore not come into force until April 2024 at the earliest. It is expected that the average crypto investor will not notice much of the new legislation. It is mainly companies that have to make adjustments in order to comply. Read more about MiCA here.