The European Union (EU) has officially signed into law the Markets in Crypto-Assets (MiCA) rules, establishing a new and comprehensive regulatory framework for cryptocurrencies. European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren signed the legislation, following its approval in the European Parliament in April. Alongside the MiCA rules, a separate law was also signed to prevent crypto from being exploited for money laundering, including a ban on anonymous crypto transactions exceeding €1,000 ($1,070).
Patrick Hansen, director of EU strategy & policy at Circle, shared the news on Twitter, highlighting that the new law will come into effect 20 days after its publication in the official EU journal. Stablecoin issuers will face stricter regulations and will have 12 months to ensure compliance, while other crypto issuers and crypto asset service providers (CASPs) will have 18 months to prepare for the new requirements.
The enactment of these regulations positions the EU as the first major jurisdiction to establish a regulatory framework for cryptocurrencies, providing much-needed clarity for firms in the industry. Prominent crypto companies like Binance have praised the EU’s initiative, with CEO Changpeng Zhao (CZ) describing it as a pragmatic solution to collective challenges. CZ expressed readiness to adapt their business operations to achieve full compliance within the stipulated timeframe.