key takeaways
- The vote on the regulation of the Cryptoactive Markets (MiCA) of the European Union will be delayed until April.
- The 400-page text reportedly needs to be translated into 24 languages, which presents problems.
- MiCA aims to combat money laundering in the cryptocurrency industry and ensure stablecoin issuers have sufficient reserves.
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The European Union is having trouble quickly translating its proposed 400-page crypto legislation into the 24 official languages within the bloc; the holdup forces him to delay the vote for another two months.
400 pages to translate
The European Union continues to reject crypto regulation.
Members of the European Parliament will not vote on the regulation of the Crypto Asset Markets (MiCA) this February, as originally planned, but in April 2022, according to a decrypt report.
MiCA would represent an important step towards establishing rules on how digital assets and the crypto industry in general would be regulated in the 27 EU member countries.
This is the second time the legislation has been delayed. The vote was originally scheduled for December. The delays are reportedly due to translation issues, as the 400-page document needs to be translated into all 24 official languages of the Union.
Among other things, MiCA seeks to impose regulations on crypto asset service providers and stablecoin issuers. Stringent identity checks of service providers would be required to combat money laundering, sanctions evasion and terrorist financing. Stablecoin issuers would also need to hold enough reserves to avoid another situation like a Terra collapse.
MiCA is also looking to place restrictions on dollar-denominated stablecoins like USDT and USDC; the regulation stems from concerns about preserving the sovereignty of the euro.
Crypto miners may also be forced to disclose their energy consumption due to environmental concerns. The European Union recently decided not to place a ban on proof-of-work protocols like Bitcoin.
Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and various other crypto assets.
