MiCA Crypto Law for EU Members Delayed by Up to 18 Months: All Details

The ‘Markets in Crypto Assets’ (MiCA) law was approved by the ECON in October last year.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 19 January 2023 14:15 IST

MiCA Crypto Law for EU Members Delayed by Up to 18 Months: All Details

Photo Credit: Unsplash/ Maximalfocus

The MiCA bill is aimed at preventing insider dealing and crypto misuse

Highlights

MiCA law could come into enforcement by April 2024
It will mandate KYC information for crypto senders and receivers
MiCA is among world’s most comprehensive crypto laws

The MiCA legislation, which is set to bind the crypto and digital assets industry in a solid framework for all members of the European Union (EU), will be tabled for final voting later this year. The reason behind this delay is that the 400-page document needs to be translated into 24 official languages. It could take up to 18 months for the European Securities and Markets Authority and the European Banking Authority to draft technical standards for the MiCA law.

“MiCA is tabled to be voted by the plenary in April, and to my knowledge, the delay is technical, caused by translating issues,” a CryptoPotato report quoted people familiar with the matter as saying.

The Markets in Crypto Assets (MiCA) framework largely revolves around consumer protection and prevention of market manipulation and financial crimes in the crypto sector.

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The MiCA bill is aimed at preventing insider dealing, unlawful disclosure of inside information, and market manipulation related to crypto-assets from happening.

In October last year, the European Parliament Committee on Economic and Monetary Affairs (ECON) approved the MiCA legislation.

Wieder einen Schritt weiter…Das Ergebnis der Trilog-Verhandlung zu #MiCA wurde vom ECON-Ausschuss angenommen. Gute Nachrichten :+1::skin-tone-3: https://t.co/z73pkZMYvO
— Stefan Berger (@DrStefanBerger) October 10, 2022

In addition to the postponement in MiCA enforcement, the Transfer of funds Regulation (TFR) will also now be tabled before the EU parliament in April. The TFR rule will mandate all crypto players to religiously collect KYC details of both senders and receivers.

The MiCA rule is one of the most comprehensive set of crypto rules formulated so far that will be implemented across multiple nations.

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Crypto transactions are largely anonymous and can process instant cross-border payments without the intervention of any broker or centralised body. Governments around the world are concerned that cryptocurrency usage could destabilise existing financial workings and give an easy out for criminals to launder money and participate in other illicit activities.

Following the EU, now members of the G20 nations under India's presidency, are working on drafting crypto regulations that would work on an international level. Before the MiCA laws goes live somewhere around 2024-2025, member nations of the EU have begun releasing crypto tax laws and inviting crypto players to operate from within their territories.

PayPal, for instance, entered the EU by offering crypto-related services in Luxembourg starting December 2022.

Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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Further reading: Cryptocurrency, EU, MiCa, Crypto Law

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More