Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. The European Union has officially signed the Markets in Crypto-Assets (MiCA) Framework Signed into Law on Wednesday the 31st of May 2023.
MiCA
The news will have a big impact on the European Union nations, as the new and comprehensive regulatory framework for crypto will impact every member state. It was completed by European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren following a vote on the legislation back in April.
Another law was signed in at the same time, one which prevents crypto being used for money laundering purposes, which among other things, bans anonymous crypto transactions of more than €1,000 ($1,070). It is important to note that the new law will only enter into force once 20 days have passed from it being officially published in the official EU journal.
More stringent regulations as part of the law will impact stablecoin issuers, who will have 12 months to ensure they are compliant with the new law. Other crypto issuers and so-called crypto asset service providers will be given up to 18 months to ensure they are compliant, giving them enough time to prepare.
The MiCA framework will be landmark in the sense that it will make the European Union the first major jurisdiction that has a regulatory framework for crypto. It hopes to provide clarity and assistance to the many firms operating in the industry within the EU.
Binance CEO Changpeng Zhao noted how the regulations in the EU are a benefit to the crypto space, and praised the work and efforts gone into creating them. He noted that its “a pragmatic solution to the challenges we collectively face.”
Back in April when the law was passed by the European Parliament CZ stated:
“There are now clear rules of the game for crypto exchanges to operate in the EU. We’re ready to make adjustments to our business over the next 12-18 months to be in a position of full compliance."
Have a great day.
Peace. CryptoGod-1.
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