The Council of the European Union, one of the legislative bodies of the European Union, has approved the proposed regulatory framework for the European crypto space. European lawmakers can now approve the Markets package in Crypto Assets prior to final adoption.
Comprehensive Cryptocurrency Regulation Moves Closer to Adoption in the European Union
The Committee of Permanent Representatives (COREPER) has approved the final version of the Crypto Asset Market (MiCA) law, according to a document announced by the Council of the European Union after its meeting on 5 October. The Commission is composed of the heads of the EU member states’ representative missions in Brussels.
COREPER prepares the agenda for the Council’s ministerial meetings and is authorized to make some procedural decisions. The European Parliament was informed of its approval in a letter to the Economic and Monetary Commission (ECON), which is scheduled to meet and vote next week.
In a letter, COREPER President Edita Hrda confirmed that “if the European Union adopts its position at the first reading… the Council will, in accordance with Article 294, paragraph 4 of the Treaty, ratify the important the position of the European Parliament and the legislation to be adopted in wording that corresponds to the position of the European Parliament. “
The committee’s approval of the draft MiCA package comes after three key bodies in the EU’s complex legislative process – Parliament, Council and Commission – reach consensus earlier this year on the text of the far-reaching proposal to regulate the block’s crypto economy. They also agreed on a set of anti-money laundering rules for transactions involving crypto assets.
The MiCA will come into force upon completion of the approval process and publication in the Official Journal of the European Union, which is expected at the end of 2022. However, many of its provisions will come into force at the end of the year. 2023 or mid-2024.
The law is intended to regulate the activities of crypto asset issuers and related service providers and to protect customers and investors across the Union. Previous attempts to amend it in Parliament, including controversial proposal Banning the provision of services for cryptocurrencies based on energy-intensive mining methods such as Bitcoin, has sparked a backlash in the crypto community and industry in the Old Continent.
This week, members of the European Parliament called for the introduction of effective and uniform taxation rules for crypto assets in member states. A non-binding resolution passed with a majority vote of European lawmakers also proposes the use of blockchain technology in the fight against tax evasion and provides small and non-cryptocurrency traders. often a simpler form of tax treatment.
What implications do you expect for the European crypto space from MiCA legislation? Share your thoughts on this topic in the comments section below.
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