The forthcoming Markets in Crypto Assets (MiCA) regulation in the European Union is expected to have a significant impact beyond its limited scope. The final text of MiCA is set to be voted on by the European Parliament later this month, and the law would likely enter into force in July. The MiCA regulation sets out to regulate those issuing crypto assets and ensure that investor information is honest. Providers of linked services will have to apply for a license to operate across the whole bloc. Stablecoin operators are also upbeat about the new regulation. The benefits of MiCA could be felt widely, as it provides a stable framework for the sector. EU member countries are currently in a race to see which of them can become the crypto hub of choice. Currently, France is the clear leader, with its existing regime known as PSAN having already registered some 66 crypto companies, including Binance, eToro, and Societe Generale. Other countries, such as Portugal, are urged to anticipate the impacts of MiCA, or they could lose the race to become a crypto hub.

(By Jack Schickler)