The European Union’s Markets in Crypto Assets (MiCA) framework was originally proposed in 2020 as part of the European Commission’s digital finance package. While the European Council, the European Central Bank (ECB) and the European data protection watchdog expressed support for the proposal in 2021, it was approved in the European Parliament as early as this quarter.
The decentralized and global nature of cryptocurrency and blockchain companies makes it difficult for them to comply with regulations in every region in which they operate. The EU’s forthcoming bill aims to address the issue. Analyst firm CoinShares noted in its latest report that MiCA negotiations are more likely to be completed by the middle of this year, given the complexity of the EU legislative process.