The European Parliament on Thursday voted to approve MiCA, the first comprehensive regulation for crypto asset service providers. This includes all types of crypto assets and stablecoins. Bitcoin (BTC), the world's largest crypto price is down more than 2% in the last 24 hours.
Based on reports, EU lawmakers have voted with 517 votes in favor of MiCA, while it received 38 votes against the set of rules. This is the first time governments have come together to oversee the emerging crypto industry. However, this development comes at a time when the market is witnessing the horrific collapse of several crypto exchanges and projects.
Bloomberg reports that Mairead McGuinness, the European Financial Services Commissioner said she expects the law to come into effect by July. However, it needs approval from the bloc's 27 member states.
First presented by the Commission in September 2020, MiCA is part of a wider digital finance package. This includes DORA (Digital Operational Resilience Act).
Provisions related to stablecoins are expected to be applied in July 2024. This will take effect after 12 months of the regulations being in force. The European Banking Authority will have new mandates including supervisory functions for stablecoin issuers.
Bitcoin, which rose on a recovery rally, fell more than 2% in the last 24 hours. BTC is trading at an average price of $28,786, at the time of report. Its 24-hour turnover fell by 7% to $21 billion.
