The European Union is getting ready to regulate digital assets among 27 EU member states by adopting the Markets Crypto Assets (MICA) framework.
Considered as a landmark move towards a regulated future in the European Union, on October 10 the European Parliament approved MICA’s framework with 28 in favor and 1 against following a vote from the European Council.
The European Union has been quite fragmented regarding crypto assets regulation resulting in most member nations dealing with crypto in a way that is best known to their officials. MICA is designed to fix this problem as each EU member state will comply with the guidelines set in the bill.
The integration of proposals into the official journal of the European Union will take place to begin the enforcement and MICA is expected to come into effect in 2024.
The whole offshoot of the digital currency ecosystem is impacted by MICA’s provisions, but there are worries regarding their suitability regarding non-Euro -denominated stablecoins. This bill might cause systematic censorship on transactions involving non-Euro-backed stablecoins.
So, this is the subject for further debates, moreover France insists on maintaining the status quo to support the sovereignty of the Euro currency.