The European Union’s (EU) landmark regulations on cryptocurrency markets (MiCA) will go to a final vote in the European Parliament by April rather than the originally scheduled February.
This is the second delay of the final vote, which was previously postponed from November 2022 to February 2023.
According to European Parliament representatives, the delay was caused by problems translating the nearly 400-page file into the 24 official EU languages.
Following the latest delay means that various bodies such as the European Securities and Markets Authority and the European Banking Authority will have to wait even longer to be able to draft technical standards for the bill, a process that will take place after its formal adoption.
In particular, once the MiCA receives formal approval, financial regulators have 12 to 18 months to create the technical standards.
Integrated set of regulations
The MiCA is a comprehensive set of regulations designed to create the first common licensing scheme for cryptocurrency exchanges and cryptocurrency companies operating in the European Union.
In addition to the delay, the Transfer of Funds Regulation (TFR) has also been postponed. The TFR, which was set to be released alongside MiCA, requires cryptocurrency transactions to include “Know Your Customer (KYC)” information for the sender and recipient of funds.
The “MiCA” regulations will require cryptocurrency exchanges and cryptocurrency wallets to provide customer information to prevent tax evasion and money laundering.
Some EU states, such as France, have pushed to speed up the process by introducing regulations and restrictions on cryptocurrencies after the FTX collapse.
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