On June 9, the EU's Market in Crypto Assets (MiCA) legislation was published in the Official Journal of the European Union (OJEU). This triggered a countdown to the law's entry into force from December 30, 2024.
Signed into law on May 31 after first being introduced in 2020, the regulation aims to create a consistent regulatory framework for crypto assets across EU member states. While the rules officially come into effect within 20 days of publication, the rules will start to apply on December 30, 2024, with some legislation coming into force six months earlier, on June 30, 2024.
Both cryptocurrency service providers and supporters welcomed the legislation to create a single market environment across Europe in terms of regulatory requirements and operational procedures. Key components of the MiCA legislation include registration and authorization requirements for cryptocurrency issuers, exchanges and wallet providers. stablecoin issuers must meet certain security and risk mitigation requirements, while cryptocurrency custody services must ensure adequate security measures are in place to address potential network security and operational failures.
The legislation also provides a framework to prevent market abuse, insider trading and manipulation in the cryptocurrency space. Meanwhile, cryptocurrency markets and operators in the US are under pressure after the SEC took regulatory action against cryptocurrency exchanges Binance and Coinbase.
Both exchanges were indicated on multiple counts, including failing to register as licensed brokers and offering unregistered securities.
