The European Union’s new Markets in Crypto-Assets (MiCA) rules were on Wednesday signed into law by European officials.
The signing into law of the new and comprehensive regulatory framework for crypto was done by European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren after the legislation passed a vote in the European Parliament in April.
It was signed alongside a separate law that aims to prevent crypto from being used for money laundering purposes, among other things by banning anonymous crypto transactions of more than €1,000 ($1,070).
The news of the signing was shared on Twitter by Patrick Hansen, director of EU strategy & policy at USDC-issuer Circle, who noted that the new law would only enter into force 20 days after it has been published in the official EU journal.
Stablecoin issuers, which will face much stricter regulations under the new law, will then have 12 months to ensure they are compliant law, while other crypto issuers and so-called crypto asset service providers (CASPs) will have 18 months to prepare.
EU news 🇪🇺— Patrick Hansen (@paddi_hansen) May 31, 2023
MiCA has been officially signed into law today by the European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren (Sweden holds the presidency of the Council of the EU atm).
1) Publication in the official journal of… pic.twitter.com/qY8QPnEZ9A
The new law will make the EU the first major jurisdiction that has a regulatory framework for crypto, thus offering the clarity that many firms in the industry have asked for.
Already, major crypto companies such as Binance have praised the European initiative to regulate crypto, with CEO Changpeng Zhao (CZ) calling it “a pragmatic solution to the challenges we collectively face.”
“There are now clear rules of the game for crypto exchanges to operate in the EU. We’re ready to make adjustments to our business over the next 12-18 months to be in a position of full compliance,” CZ said back when the law was passed by the European Parliament.