The European Central Bank, will be preparing to implement a new law by warning European Union member states about the necessity of harmonizing regulations for crypto.
The ECB was concerned about possible regulatory overlap between respective central banks in the EU and crypto companies as officials prepare to implement the Markets in Crypto-Assets framework. The European Parliament, European Commission, and European Council reached an agreement to bring crypto issuers and service providers within their jurisdictional control under a single regulatory framework.
Regulators from 19 EU member states will attend a supervisory board meeting to discuss MiCA and its possible implementation. Once implemented, the law will require asset service providers to adhere to certain requirements aimed at protecting investors as well as warn clients about the potential risk of investing in a volatile crypto market.
EU officials will also have an 18-month review period to assess the proposed regulatory framework and determine whether it includes other crypto-related products such as NFTs. Before the passage of MiCA, financial regulators from individual European Union member states largely had to handle crypto regulation within their own borders ,though officials recently reached an agreement on forming an authority for supervising anti-money laundering regulations for crypto firms.
