Finance ministers representing all 27 member countries of the union voted unanimously to enact the Markets in Crypto-Assets regulation just weeks after the European Parliament overwhelmingly approved a consensus version, Bank Info Security, reports.
The proposal, known as MiCA, will go into effect progressively. Rules applying to stablecoins will go into effect in July 2024 and provisions for other crypto assets are set for January 2025.
The regulation requires crypto-asset issuers to draft detailed white papers and register with a national financial regulator, which could deny authorization for the asset. Registration in one European country will allow the crypto platform to operate across the entire bloc. Regulators will be able to suspend crypto-asset service providers from trading for up to 30 working days should they believe the platform has violated provisions of MiCA such as a requirement for internal controls to safeguard against market abuse.
MiCA also requires crypto trading platforms to hold minimum cash reserves, with the amount depending on the type of crypto asset.