Aaryamann Shrivastava
FXStreet
- The MiCA proposal is focused on establishing a consistent regulatory framework for crypto assets in European Union.
- The European Council approved the text leaving its fate in the hands of the EU Parliament.
- Earlier this week, the European Parliament also approved crypto tax policies, including the use of blockchain for collecting tax.
The European Union has had its eyes on crypto regulation for a while now, and over the last couple of years, it has deepened its approach to the matter. One of the most crucial aspects of this regulation was the Markets in Crypto Assets framework, also known as the MiCA framework.
MiCA gets its approval
The regulation of cryptocurrency assets in Europe got its first sign of becoming a reality after the European Council decided to move forward with it. As per a note from October 5, the Council's permanent representatives committee approved and sent the MiCA text to the Parliament Committee on Economic and Monetary Affairs.
According to the chair of the permanent representatives' committee, the MiCA framework would come into being "should the Parliament adopt its position at first reading." MiCA has met with mixed feelings since its introduction in 2020, but in all, the proposal is focused on building a uniform regulatory framework for all EU member states.
The MiCA proposal justified its approval by stating,
"The lack of an overall Union framework for crypto-assets can lead to a lack of users' confidence in those assets, which could significantly hinder the development of a market in those assets."
With the next meeting set for October 10, MiCA would be implemented and brought into effect from 2024 if the Parliament approves the proposal.
EU takes aim at crypto
As reported by FXStreet earlier this week, the European Parliament members also voted on a non-binding resolution that would make cryptocurrencies a taxable asset. Passing with more than 91.3% votes, the framework has been approved by the members.
In addition, the resolution suggested using blockchain technology to make tax collection more efficient. According to the resolution, leveraging the technology could allow for automated tax collection as well as increased transparency, limiting corruption.
If these policies come into effect, the crypto industry could see a shift in the European Union. However, there might be a while before that happens.
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