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The Council of the EU, one of the EU’s legislative bodies, has approved the proposed regulations for the European crypto space. It is now up to European legislators to approve the Markets in Crypto Assets package before it is finally adopted.
The Committee of Permanent Representatives (COREPER) has approved the final version of the legislation on markets for crypto-assets (MiCA), according to a document published by the Council of the European Union after a meeting on 5 October. The committee consists of the EU countries’ heads of mission in Brussels.
COREPER prepares the agenda for the ministerial meetings of the Council and is empowered to take some procedural decisions. The European Parliament has been informed of the approval in correspondence to the Economic and Monetary Affairs Committee (ECON) which is expected to meet and vote next week.
In a letter, Coreper leader Edita Hrda confirms that “if the European Union should adopt its position at first reading… the Council, in accordance with Article 294, No. 4 of the Treaty, will approve the position of the European Parliament and the legal act will be adopted in the Treaty. the wording corresponding to the position of the European Parliament.”
The approval of the draft MiCA package by the committee comes after the three main institutions of the EU’s complex legislative process – the Parliament, the Council and the Commission – reached consensus earlier this year on the text of the comprehensive proposal to regulate the bloc’s crypto-economy. They also agreed on a set of anti-money laundering rules for transactions involving crypto-assets.
MiCA should enter into force after the approval process is completed and it is published in the EU Official Journal, expected towards the end of 2022. However, many of its provisions will come into force in late 2023 or mid-2024.
The legislation aims to regulate the activities of issuers of cryptoassets and providers of related services, while protecting customers and investors across the Union. Previous attempts to revise it in parliament, including a controversial proposal to ban the provision of services for cryptocurrencies based on energy-intensive mining methods like Bitcoin, sparked reactions in the crypto industry and society on the old continent.
This week, the members of the European Parliament called for the introduction of effective and uniform taxation rules for crypto-assets in the member states. A non-binding resolution adopted with the votes of a large majority of European lawmakers also proposed to use blockchain technology in the fight against tax evasion and to offer small and occasional crypto traders a simplified tax treatment.
What effects on Europe’s crypto space do you expect from the MiCA legislation? Share your thoughts on the topic in the comments section below.
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