EU passes MiCA legislation in crypto regulation breakthrough


The European Union has come one step closer to making crypto regulation a reality after it passed the Markets in Crypto Assets Regulation (MiCA) bill.

According to Decrypt, the legislation hopes to regulate the digital assets space within the union. The European Parliament voted 28 to 1 in favour of the legislation, which will require tougher rules for crypto firms.

The MiCA bill asks those that issue crypto to publish a cryptoasset whitepaper that contains information about their project.

In addition, the bill asks stablecoin firms to meet capital requirements. Many of these businesses will be restricted on how many tokens they can issue if they are not denominated in euros or other currencies used by EU member states.

Decrypt noted that the MiCA looks to regulate cryptocurrency mining as well with the bill asking big cryptoasset service providers to disclose their energy consumption. The EU could also soon classify NFTs as securities under the new bill.

Adjacent to the passing of the MiCA bill was the passing of an AML bill that will request crypto transfers to include data on the payer and the payee.

The MiCA-aligned bill will ask cryptoasset service providers to provide information to authorities if an investigation is conducted into money laundering or terrorist financing.

European Parliament officials will again vote on final approval of the MiCA legislation later this month before it becomes law.

Earlier this year, the Council Presidency and European Parliament came to an agreement on the MiCA proposal.

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