• The EU’s Markets in Crypto-Assets (MiCA) bill has been published in the Official Journal of the EU, kicking off a 20-day countdown for it to take effect.
• MiCA will have two different applicability timelines: 12 months for stablecoins and 18 months for other crypto assets and service providers.
• As MiCA edges closer to becoming law, several crypto businesses have already started setting up shop in the region.
What is MiCA?
The European Union’s Markets in Crypto-Assets (MiCA) bill is an effort to provide regulation and oversight of cryptocurrency firms operating within its borders. It covers stablecoin issuance, licensing for crypto asset service providers, and anti-money laundering rules. Following its approval by the EU Parliament in April, the bill has passed two significant milestones: support from the EU Council and now its publication in the Official Journal of the EU (OJEU).
20 Day Countdown
With its publication on June 9th, a 20 day countdown began for MiCA to “enter into force” which means that it will become legally recognized at the end of this period. However, it won’t be mandatory until its “date of applicability”. This date differs depending on what type of crypto asset or provider is involved: 12 months for stablecoins or 18 months for other crypto assets and service providers.
Crypto Businesses Prepare
As MiCA comes closer to becoming law, many cryptocurrency companies are making moves to set up shop in Europe before it takes effect. These include Gemini and OKX as well as Binance, who estimates that they are 90% ready for their license with MiCA’s regulations.
US Regulatory Uncertainty Increases
The uncertainty surrounding cryptocurrencies in the US increases as time goes on; this makes regulations like MiCA more important than ever before as companies look to relocate outside American borders where regulations are clearer and more supportive towards digital assets businesses.
Why This Matters
MiCA being published in the OJEU signals a significant milestone that brings it much closer to being legally enforceable across all member states of the European Union; this could change how cryptocurrencies operate within Europe significantly while also giving those operating within more security when doing business there.