EU Parliament Committee Backs MiCA Deal to Effectively Manage Crypto

  • Richard Marley
  • October 13, 2022
  • 2 minutes read
  • 59

The MiCA deal has been approved by the economic committee of the EU Parliament. The committee has also backed the adoption of regulations for tracking crypto transfers.

The regulation designed to govern the crypto sector in the European Union has received approval from the European Parliament Committee on Economic and Monetary Affairs (ECON). The vote, which was preceded by the Parliament’s plenary vote on this proposed framework, saw 28 member vote in favor and just one against.

The MiCA proposal was agreed upon by representatives of significant EU institutions as well as member states. The proposed law was also approved by the Committee of Permanent Representatives (COREPER).

The 27-strong bloc will adopt uniform legislation for digital assets due to MiCA. Protecting consumers and the environment together with establishing protections against market manipulation as well as corresponding financial crime are some of the main objectives.

The package relates to digital assets that fall outside the scope of the EU’s current financial services regulations. It tries to control the actions of service providers who offer cryptocurrencies, including how they are issued, traded, and exchanged.

“One step further… The result of the trilogue negotiation on MiCA was accepted by the ECON committee. Good news” said the rapporteur on the legislation, Stefan Berger.

Another top concern for EU authorities is preventing money-laundering issues related to crypto assets. Additionally, legislators from ECON and the Committee on Civil Liberties, Justice, and Home Affairs (LIBE) accepted a provisional accord on anti-money laundering guidelines for cryptocurrency transfers, also achieved in June and in line with MiCA.

These will implement a “travel rule” for crypto asset movements, which requires that each transaction include details on the beneficiary as well as the origin of the assets. The “unhosted wallets,” or those owned by private individuals, that transact with wallets run by service providers, would also be subject to AML requirements.

Suggested Read: EU Lawmakers Propose New Bill to Combat Money Laundering through NFTs