The European Union continues to delay crypto regulation. Members of the European Parliament will not vote on the Markets in Crypto Assets (MiCA) regulation this February as originally planned, but in April 2022, according to a report.
The MiCA regulation would represent a significant step towards establishing rules on how digital assets and the crypto industry in general should be regulated across all 27 EU member states.
This is the second time the legislation has been postponed. The vote was originally scheduled for December. The delay reportedly occurred due to translation issues, as the 400-page document needs to be translated into all 24 official languages of the Union.
Among other things, MiCA aims to impose regulations on crypto asset service providers and stablecoin issuers. Service providers would be required to conduct strict identity checks to combat money laundering, tax evasion, and terrorist financing. Stablecoin issuers would also need to maintain sufficient reserves to avoid another situation like the Terra collapse.
MiCA also seeks to introduce restrictions on dollar-denominated stablecoins such as USDT and USDC, due to concerns regarding the preservation of the euro’s sovereignty.
The regulation also targets crypto miners, who may be required to transparently disclose their energy consumption data due to environmental concerns. The European Union recently decided not to establish a ban on the proof-of-work protocol that underpins bitcoin.
