The goal of MiCA, which goes into full effect by the end of 2024, is to establish a uniform regulatory framework for crypto assets among member states of the European Union.




The Markets in Crypto-Assets (MiCA) legislation of the European Union was published in the Official Journal of the European Union (OJEU) on June 9. The countdown to the law's effective date of December 30, 2024, begins as a result of this.


The guidelines, endorsed into regulation on May 31 after first being presented in 2020, mean to make a steady administrative system for crypto resources among European endorser states.


The rules will begin to apply on December 30, 2024, with some parts of the legislation going into effect six months earlier, on June 30, 2024, despite the fact that the rules are officially in effect within 20 days of being published.


In terms of regulatory requirements and operating procedures, cryptocurrency service providers and advocates alike have praised the legislation for creating a single market environment across Europe.


Registration and authorization requirements for cryptocurrency issuers, exchanges, and wallet providers are key components of the MiCA legislation.


Related: The EU will use blockchain to verify professional and educational credentials. 

According to the rules, stablecoin issuers must meet certain security and risk mitigation requirements, and cryptocurrency custody services must ensure sufficient security and safety measures to address potential operational and cybersecurity failures.


In addition, the legislation provides a framework to stop insider trading, manipulative behavior, and market abuse in the cryptocurrency industry.


In the meantime, the Securities and Exchange Commission has taken regulatory action against some exchanges, putting pressure on crypto markets and operators in the United States.


The two trades are being sued on various counts, including their inability to enlist as authorized intermediaries and offering unregistered protections.