Regulation
Cryptocurrency regulation is in the air as European elections get underway –
Elections for the more than 700 members of the European Parliament began on June 6, 2024, with the result likely to usher in significant changes to the cryptocurrency industry.
The MiCA regulation is a hot topic as the European elections get underway
The elections will be held in conjunction with the entry into force of the EU rules on cryptocurrencies, Markets in Crypto Assets Regulation (MiCA).
Parliament’s Economic and Monetary Affairs Committee, which has played a key role in amending and creating cryptocurrency legislation in recent years, was one of the main players behind the creation of MiCA, which represents the cryptocurrency regulatory market.
The cryptocurrency industry will continue to keep an eye on the elections to see who will fill key positions within the new parliament.
If key lawmakers who support cryptocurrency regulation actually lose their seats in the new 720-member parliament, it could lead to a period of uncertainty for the cryptocurrency industry’s political agenda.
The “wild card” of the European elections could pave the way for the first ETF on Ether: the outcome of the elections will be a crucial moment for the implementation of the MiCA regulatory framework and the approval of the first spot ETF on Ether. https://t.co/fODd3vXx8h #CryptoNews #crypto #Bitcoin pic.twitter.com/zSMlGfATJR
— @zimisss (@zimisss) June 3, 2024
Numerous pending bills regarding cryptocurrencies are still pending as they were not finalized before the election began.
A high-profile example is the digital euro, currently overseen by German Member of the European Parliament Stefan Berger. If Berger is not re-elected, the digital euro will require a new parliamentary leader.
Depending on the election results, new members of the European Parliament will be required to oversee other regulations such as payment services and financial data. The Payment Services Regulation is key to determining whether issuers of stablecoins and fiat-backed digital assets are required to comply with even more stringent measures than those proposed by MiCA.
MiCA established licensing requirements for stablecoin issuers and cryptocurrency companies to protect consumers. The implementation will take place in stages, starting at the end of June. According to the Digital Operational Resilience Act 2025, financial institutions, including crypto service providers, will also be required to adhere to a rigorous list of IT security requirements.
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Disclaimer: Cryptocurrencies are a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.