• The European Union’s much-awaited set of crypto rules, known as the Markets in Crypto Assets (MiCA) regulation, has been deferred to April 2023.
• MiCA is expected to become the first comprehensive pan-European crypto framework when it goes into effect in 2024.
• However, experts are concerned that MiCA may not be enough to effectively regulate the crypto industry on the continent by 2023.
The EU’s New Cryptocurrency Regulations
The European Union is preparing a much-anticipated set of cryptocurrency regulations called Markets in Crypto Assets (MiCA). This new legislation is intended to be the first comprehensive pan-European framework for regulating cryptocurrencies and other digital assets.
Originally planned for November 2022, MiCA’s final vote has been delayed until April 2023 due to technical difficulties. It is expected that MiCA will go into effect in 2024 after all necessary steps have been taken.
Despite its potential effects once implemented, experts are worried that MiCA may not be enough to effectively regulate the crypto industry on the continent by 2023 – particularly with regards to decentralized finance (DeFi). President of the European Central Bank Christine Lagarde even suggested there could be a “MiCA II” which would address these issues more thoroughly.
What Could Change?
It remains unclear what changes might need to be made before MiCA can become a truly “comprehensive framework” capable of preventing future failures like TerraUSD or FTX from occurring. In an industry as dynamic as cryptocurrency, many new hot topics could arise throughout 2023 which may require additional attention from regulators if they are to properly protect consumers and investors.
Ultimately, only time will tell whether or not MiCA will prove sufficient for regulating Europe’s cryptocurrency market by 2023. Although delays have caused some uncertainty, the European Union remains committed to ensuring consumer protection and investor safety within this rapidly evolving space.