The Council of the European Union, one of the European Union’s legislative bodies, has approved a draft regulatory framework for the European crypto space. It is now up to European lawmakers to approve a package for the crypto asset market before final adoption.
Comprehensive crypto regulation is close to adoption in the EU
The Committee of Permanent Representatives (COREPER) has approved the final version of the Crypto Asset Market (MiCA) law, according to adocumentreleased by the Council of the European Union after its October 5 meeting. The Committee is composed of the heads of delegations of the EU member states in Brussels.
COREPER has the power to prepare the agenda for the Council’s ministerial meetings and to take some procedural decisions. The European Parliament has been informed about the approval in a communication to the Economic and Monetary Affairs Committee (ECON), which will meet and vote on it next week.
COREPER President Edita Fulda confirms in his letter that “if the European Union adopts its position in the first reading … the Council shall, in accordance with Article 294, paragraph 4, of the Treaty, approve the European Parliament’s position and the law shall be adopted with wording corresponding to the European Parliament’s position.”
The approval of the draft MiCA package by the Commission came after the three main bodies in the EU’s complex legislative process (Parliament, Council and Commission) reached agreement earlier this year on the text of a comprehensive proposal to regulate the block crypto economy. They also agreed on a set of anti-money laundering rules for transactions involving crypto assets.
MiCA should enter into force after completion of the approval process and publication in the EU Official Journal, which is expected around the end of 2022. However, most of its provisions will be applicable by late 2023 to mid-2024.
The law is intended to regulate the activities of issuers of crypto assets and providers of related services and protect customers and investors across the EU. Previous attempts to amend it in Congress, including a controversial proposal to ban the provision of services for cryptocurrencies that rely on energy-intensive mining methods such as Bitcoin, have provoked reactions in the crypto industry and community on 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. The non-binding resolution, adopted by a majority vote of MEPs, also proposed adopting blockchain technology to combat tax evasion and provide simplified tax treatment for small and occasional crypto traders.
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