The European Parliament has approved the Markets in Crypto Assets (MiCA) regulation, which is intended to protect consumers and ensure financial stability in the crypto industry. The law requires exchanges and wallet providers to seek a license and stablecoin issuers to hold appropriate reserves. The law could take effect from mid-2024, following a 12-18 month transition period that will begin in June or July. The MiCA regulation has been largely welcomed by the industry, but there are still details to be ironed out, including how individual national regulators in the European Union will police the law. EU agencies will also have to draft and consult on implementing measures that lie underneath the overarching MiCA law.

(By Jack Schickler)