The European Union signed a law regulating cryptocurrencies

The European Union has made a significant step in the regulation of cryptocurrencies — the European Parliament has adopted the law on cryptoasset markets (MiCA).

on May 31, the document was signed by the President of the European Parliament Roberta Mecola and Swedish Minister of Agriculture Peter Kullgren. The law will come into force 20 days after its publication in the EU’s official journal. However, certain provisions regarding stablecoins will be implemented over the next year and a half.

The MiSA proposes that crypto companies, including crypto wallet manufacturers, will have to obtain a license to operate in the European Union. The exchanges will also be required to comply with all governance and consumer protection regulations in force in the EU.

The Digital Assets Directive is a comprehensive attempt by the EU to regulate cryptocurrency-related services that are not yet covered by existing legislation. The purpose of this regulation is to promote innovation and fair competition, ensure a high level of consumer protection, maintain market integrity, and enable cryptocurrency service providers to scale their business internationally.

The provisions directly related to stablecoins will come into force in July 2024, while most of the other provisions will be implemented no earlier than January 2025. This phased approach is intended to give the crypto market enough time to adapt to the new regulatory policy.

The law has received overwhelmingly positive feedback from major players in the crypto industry. Thus, Ripple CEO Кріс Ларсен" href="https://noworries.media/biography/kris-larsen/" data-bio-id="3674">Chris Larsen praised the provisions of MiCA, urging others to follow suit. In particular, he suggested that the United States should draw inspiration from the EU’s comprehensive approach to cryptocurrency regulation. Ripple’s CEO emphasized that a robust regulatory framework is needed to build trust in the crypto industry and that many other G20 countries are already developing similar recommendations.