The EU's Markets in Crypto Assets (MiCA) regulation is set for approval as parties in the European Parliament have expressed their support. The law will grant crypto exchanges and wallet services the ability to provide regulated services throughout the European Union, and it requires issuers of stablecoins to hold sufficient reserves.

This indicates the MiCA regulations will pass the necessary majority vote that is due to take place on Thursday. Lídia Pereira, a representative from the biggest European political grouping, the European People’s Party, expressed her appreciation of the law's progress. She noted that stringent rules and supervision are essential, referring to recent problems involving FTX, Celsius, Voyager, and TerraUSD.

Stefan Berger, the German Center-right lawmaker and negotiator of the law, further mentioned that regulations are necessary to bring back trust and stability to the sector. The laws will also bring Europe to the forefront of the token economy.

Other representatives showed support for a seperate anti-money laundering measure, the Transfer of Funds rules, which seek to collect information about users’ identities. Ernest Urtasun from the Green grouping commented that these are the first steps to put an end to the “wild west” era for unregulated crypto assets, as previously these provided a safe haven for fraudsters and criminal networks.

Upon completion of the formal agreements between the members of the European Parliament and the EU’s Council, MiCA would be officially published in the bloc’s Official Journal. This is expected to take place in June, and it would likely make the EU the first region with a law that covers crypto assets at large. The MiCA law will take effect approximately 12-18 months after its publication, whereupon EU businesses and citizens will benefit from a newfound level of trust, stability and protection in the world of cryptocurrency.



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