The European Union (EU) is inching closer to reaching an agreement on the Markets in Crypto-Assets (MiCA) crypto legislative package. A Bloomberg report unveiled this news today, citing sources conversant with this development. The sources requested to remain anonymous, seeing as the information is confidential.
According to the report, France – which currently Chairs the EU and European Parliament – is optimistic about addressing issues holding up MiCA within a month. Negotiators are scheduled to meet on June 14 and June 30, according to the sources.
Should the EU parliament and member states reach an agreement, all 27 EU member states will share unified crypto rules. This development would place the EU at the forefront of crypto regulation. MiCA will address issues like investor protection and the impact of cryptos on financial stability.
The EU’s move to hurriedly implement MiCA comes on the heels of the Terra ecosystem collapse. This crash saw TerraUSD (UST) and Terra (LUNA) lose over $40 billion within a week. While Terraform Labs attempted to revive the network by forking it, these efforts are yet to bear fruit.
Issues Delaying MiCA Implementation
At the moment, EU member states and the European Parliament primarily disagree on three issues, which are delaying MiCA’s implementation.
The first issue is whether to include non-fungible tokens (NFTs) in the new rules. Next comes the issue of how to regulate stablecoins. Finally, both parties are yet to reach a consensus on the supervision of the largest crypto-asset service providers (CASPs).
Additionally, member states and the parliament are discussing how to restrict the use of stablecoins in payments. Specifically, the EU seeks to introduce a transaction limit for transactions that are not denominated in euros.
On top of this, the parliament wants to include the environmental impacts of cryptos in MiCA. The European Commission suggests disclosing the energy consumption of CASPs. Members of the EU Parliament want the EU Executive’s arm to develop technical standards for these disclosures. Per the sources, the French Presidency is willing to accept this proposal.
Member states and the parliament also have varying opinions on including anti-money laundering (AML) clauses in the MiCA package. National governments claim a separate set of rules for this issue. On the other hand, the parliament seeks to create a list of CASPs that do not comply with AML rules.
To reach an agreement, the French Presidency is willing to accept this list, according to the sources. However, it will only accept the list under a different configuration.