The Markets in Crypto Assets (MiCA) regulation, a major piece of legislation from the European Union (EU) concerning cryptocurrencies, has been delayed until April due to issues with the translation of the guidelines into the EU’s 24 official languages. This is the second postponement of the final vote; the initial extension was from November 2022 to February 2023.
The most recent postponement was caused by a technical problem that prevented the 400-page official document from being translated into all 24 official languages of the EU.
According to EU regulations, laws like MiCA, which are written in English, must be published in all of the union’s official languages and adhere to EU requirements. Translation problems also contributed to the initial postponement in November 2022, which pushed the vote to February.
The Transfer of Funds Regulation (TFR) has also been moved to the same vote session in April. The TFR mandated that cryptocurrency transactions include know-your-customer (KYC) information for the sender and receiver and was planned to launch alongside MiCA.
If the final vote is delayed, European financial authorities will have to wait longer before drafting the legislation’s implementation guidelines. Financial regulators have 12 to 18 months to develop the technical requirements after MiCA obtains official approval.
MiCA includes a reserve requirement for stablecoin issuers and aims to create the first-ever standard licensing system for cryptocurrency wallets and exchanges to operate throughout the EU.
Through MiCA, European officials hope to establish a standard regulation that will provide unified standards for crypto assets at the EU level, giving those assets legal security that isn’t already provided by existing EU law.
The legislation would also outline standards for the administration, organization, and management of token issuers for digital assets, as well as guidelines for the disclosure and transparency standards for generating and trading digital assets.
If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
