The European Council on Wednesday approved a proposal for cryptocurrency regulation known as the Markets in Crypto Assets Regulation (MiCA), in the first move towards establishing a licensing mechanism for crypto exchanges and assets in Europe.
See related article: Bitcoin, proof-of-work ban removed from European Union’s MiCA
Lawmakers at the European Parliament are still required to formally agree on the full legal text. The regulation is expected to come into effect in 2024.
“To ensure the proper supervision and monitoring of offers to the public, issuers of asset-referenced tokens should have a registered office in the Union,” the proposal said.
The proposal imposes regulations on stablecoins and cryptocurrencies, regardless of how the issuer intends to design the crypto asset.
The proposal also stated that crypto assets have the potential to bring “significant benefits” to retail investors as well as market participants.
The MiCA proposal was first introduced in September 2020 to the European Commission.
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