- There was difficulty in translating 400-page document into the 24 official languages.
- According to EU authorities, MiCA would have averted the FTX catastrophe.
Due to technological difficulties, the European Union has to postpone the implementation of its major new law, the Markets in Crypto Assets Regulation (MiCA).
But the final vote won’t happen until April at the earliest. Problems in translating the roughly 400-page document into the 24 official languages of the union. Are likely to blame for the delay, according to a spokesperson for the EU Parliament.
Waiting For Final Approval
The European Union decided in November 2022 to push back the referendum to February 2023. They were concerned that the licensing regime’s planned adoption in 2024 would be delayed due to technical challenges in the long wording.
According to EU authorities, MiCA would have averted the FTX catastrophe. However, the rule has a major loophole that lets companies like FTX keep supplying EU customers unchecked.
Legislators must still formally ratify the almost 400-page document. The EU’s Governing Council, which is made up of national governments, is another important group. The bill has gotten preliminary approval from European parliamentarians, and it also details reserve requirements for stablecoins but has not yet been given formal approval. The rule will have an effect on all 27 member nations, but it will mainly be up to national regulators to execute and interpret the regulation.
Not only has MiCA’s regulation been pushed back, but so have others. The Transfer of Funds Regulation (TFR) will also be put to a vote at the same April meeting. The catch is that this is meant to happen at the same time as MiCA. For compliance with the TFR, all crypto transactions must include recipient and sender “know your customer” details.