The EU’s landmark framework, which will be enforced at the 27-nation bloc’s state level, still needs to be officially approved by the EU Council, but after years of deliberations and two official delays, the EU laws will likely be rolled out over a 12- to 18-month transition period that will start this June or July.
Changpeng Zhao, CEO of the world’s largest crypto exchange, Binance, tweeted his support of MiCA, calling it “a pragmatic solution.”
Related: EU Crypto Regulations Pass
“We’re ready to make adjustments to our business over the next 12-18 months to be in a position of full compliance,” Zhao added.
Binance has long faced regulatory investigations and trouble in the U.S. over concerns regarding the legality of its operations.
U.S.-based crypto exchange Coinbase separately tweeted after MiCA’s passage that the vote is a “pivotal moment for crypto regulation” because the law will “give crypto organizations the confidence to invest and grow in the region.”
Considering how regulatory uncertainty has hamstrung the crypto industry’s ability to grow within the U.S., the move brings some amount of welcomed transparency and stability to the global stage.
As a result of that transparency and stability, with AML and corporate control requirements that may help rein in the commonly perceived volatility of the sector, MiCA may inspire many banks that looked askance at crypto to change their tune and become more willing to service EU-licensed firms that they understand are operating to a certain standard.
