European Union officials have agreed on the final wording for its landmark crypto legislation which could pave the way for a Europe-wide regulatory approach.
The full legal text of the Markets in Crypto Assets Regulation (MiCA) was approved at a meeting of EU ambassadors on Wednesday, according to a letter from committee chair Edita Hrdá.
In the letter addressed to the European Parliament’s chair of the Committee on Economic and Monetary Affairs Irene Tingali, Hrdá said that cooperation between the Parliament and the Council should enable the regulation to be approved on its first reading in Parliament.
In June, policymakers agreed to a deal on the legislative package after two years of back-and-forth.
The regulation, in its current form, will require anyone seeking to issue crypto to publish a “crypto-asset white paper” containing information about their project.
Issuers of stablecoins, meanwhile, will be subject to specific capital requirements.
This means projects will need to hold reserves to back up the value of their tokens in an amount proportional to how much is issued, though local authorities could increase that amount of funds required based on how risky it is judged to be.
The legal text will now go on to the European Parliament, where, subject to approval, it will likely be published in the Official Journal of the European Union early next year, with the rules set to come into force in 2024.
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