The Markets in Crypto Assets (MICA) legislation authorization scheme has been halted by European Union lawmakers. The glaring flaws in the loquacious script could be the reason for the adjournment. The authorization could have legalized crypto markets companies in the member states of the European Union (EU).
EU statesmen halted the MICA voting process and fixed February as the new date for the exercise. This would likely imply further impediments in the memorable authorization for crypto firms within the union. An EU legislative spokesman informed CoinDesk about the new development and why the parliament made the decision.
Why EU Adjourned MICA Authorization
The protracted and intricacy feature of the script halted a vague initial plan of the lawmakers. The parliament is scheduled to vote for the authorization during its December plenary session. CoinDesk was informed that the MICA legislation had been scrapped.
The legislation’s institutional blueprint enabled stablecoin capital criteria to prevent future risks. The need for such regulation resulted from the aftermath of terraUSD’s dump. MICA initiated the legislation in June, while the entire script was released in October.
The United States Treasury encouraged EU member state financial institutions to embrace the MICA. Crypto traders’ funds and accounts will be safeguarded through the guidelines of the legislation. Fraudulent crypto institutions will also be hindered from operating in the region.
An Overview of EU Requirements for Crypto Companies
The script needs authorization from the legislative and Resident governments that comprise the EU’s delegation. One of the commission’s requirements is translating the script into the 24 official languages. Also, judicial interpretation and authentication of the script would be submitted to the commission for scrutiny.
The prerequisites of the law mandate crypto firms to obtain permission from resident regulators must be achieved. Crypto wallet providers and exchange platform owners must obtain MICA authorization. However, they must apply for it within 12 and 18 months after the EU’s journal publication.
Numerous crypto advocates have expressed their fear and the possible outcome of the legislation and its authorization. They revealed that the legislation might become too restrictive for investors and traders in the crypto industry. However, crypto-related activities will continue as usual until the legislation is authorized.