Lawmakers Overwhelmingly Back EU's MiCA Crypto Law in Committee Vote

European Union (EU) lawmakers on Monday voted 28 to 1 in favor of landmark new crypto laws, virtually assuring the passage of legislation that was signed off by the bloc’s national governments last week.

The Markets in Crypto Assets regulation (MiCA) lets providers of wallets and other crypto services market themselves across the bloc, if they register with national authorities and meet minimum guarantees intended to protect investors and maintain stability.

The Monday vote by the Economic and Monetary Affairs Committee, based on a deal struck privately with EU member states who meet in a body known as the Council, took place without further discussion, clearing the way for endorsement by the full European Parliament before the end of this year.

Lawmaker Stefan Berger, who shepherded talks for the parliament, called the move “good news” in a tweet welcoming the vote.

The European crypto industry has broadly welcomed the regulatory recognition, even if there are some qualms over the restrictions it places on the use of stablecoins, crypto assets that seek to maintain their value with respect to fiat currencies, as well over uncertainties about whether the rules will apply to non-fungible tokens (NFTs).

The law will enter into force between 12 and 18 months after being published in the bloc’s official journal, which is likely to happen next spring.

Read more: Industry Offers Cautious Welcome to EU’s Landmark Crypto Law MiCA

Shortly after the MiCA vote, lawmakers also supported a separate law to identify the participants to crypto transactions in a bid to curb crypto money laundering. The Transfer of Funds Regulation, which previously raised industry hackles for threatening to regulate the use of private wallets, was jointly agreed upon with the parliament’s civil liberties committee.

UPDATE (Oct. 10, 2022, 16:53 UTC): Adds details on the Transfer of Funds Regulation vote.