The Markets in Crypto Assets (MiCA) bill has been passed by the European Parliament, which aims to create a consistent regulatory framework for crypto assets in the European Union (EU) member states. Although the bill still needs approval from the European Council and legal and linguistic checks, it could potentially take effect in 2024. Many industry leaders and policymakers in the crypto space have applauded the bill’s approval, with some suggesting that the United States could fall behind in digital asset regulation, driving companies to the EU.
The CEO of Binance, Changpeng “CZ” Zhao, stated that he would begin implementing changes to the exchange in the next 12-to-18 months to be in compliance with the new framework. EU Commissioner for Financial Stability Mairead McGuinness also praised the bill and stated that the EU was “ahead of many other jurisdictions” in crypto regulation. The passing of the MiCA bill follows a crypto market crash and high-profile firm bankruptcies, prompting policymakers to implement a broader regulatory framework.