The MiCa law has been delayed again due to a translation problem
Investors are starting to lose patience as the European Parliament postpones the vote on the MICA bill for the second time.
This was reported by a source close to the parliament. Voting on the MiCa bill has been postponed until April 17, this time due to a translation problem. Indeed, there are EU translators a long document of 400 pages to be translated into 24 languages of the member countries. The law provides that all citizens have the right to communicate and receive information in one of the official languages of the EU.
MiCA will not come into force until 2024
The EU announced in November that the draft law would be published in February 2023, after being finalized in October 2022.
According to the current laws, the parliament must first introduce the MIC law in the plenary session scheduled for mid-April 2023. Lawmakers will then take 12 to 18 months to work out the technicalities of the bill. Therefore, The MiCA law is not due to come into effect until 2024.
A new bill designed to “unify” cryptocurrency regulation across the EU requires active cryptocurrency issuers Follow the rules for fighting ? money laundering and market manipulation.
“The lack of a crypto-active framework in general could lead to regulatory fragmentation. “One that could distort competition in the EU single market, prevent crypto-service providers from expanding their operations to other countries and encourage regulatory arbitrage,” the proposed law reads.
The MiCa bill also emphasizes the protection of active crypto users, including ? stablecoins. Hence, stablecoin issuers will have to maintain 100% reserves and set up claim services. In turn, ⛏️ cryptocurrency companies will have to declare all information related to energy consumption.
After the approval of the bill, EU legislators should immediately implement this at national level.
European investors remain at the mercy of lawmakers
This new postponement of the MiCa bill should not change much for European investors using cryptocurrencies abroad.
After the collapse of FTX, many industry experts, including the director of the European Banking Authority, José Manuel Campa, admitted that “MiCa bill has blind spots”.
According to Jose Manuel Campa, the bill does not prevent EU citizens from transacting with ? crypto businesses external. Under the MiCA law, companies only need to register with a single national authority to offer their services to all EU member states.
As the legal limbo continues, European lawmakers seem determined to tighten the noose on the cryptocurrency market. For example, the Cypriot authorities revoked the license of the European subsidiary of the FTX cryptocurrency after it went bankrupt in November 2022.
Similarly, the governor of the Banque de France has called on the stock market police to step up monitoring of crypto companies pending the approval of the ? MiCa bill.
“It is desirable that France move to the mandatory approval of PSAN as soon as possible. (digital asset service providers) rather than simply registering them,” Francois Villeroy de Galhau said in his New Year speech.
Recall that in May 2022 The Prudential Control and Resolution Authority (ACPR) has authorized Binance to operate as a digital asset service provider. in France.
Moral of the story: MiCa law promises to be strict, but legal loopholes can sometimes be more dangerous than overly strict rules.
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