By: Janet Ho (Chainalysis)
On 10 October, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) voted to support the MiCA (Markets in Crypto Assets) Regulation provisional agreement reached on 30 June. The lawmakers from the Parliament’s ECON and LIBE committees also voted on the same day to support the Transfer of Funds Regulation (or TFR, also known as the Travel Rule).
TL;DR – What are MiCA and TFR?
We dove into detail on MiCA and TFR in our blog recently (Part1, Part 2), but in short, MiCA provides a new regulatory framework for exchanges, trading platforms, brokers, custodians, as well as token and stablecoin issuers that intend to operate in the EU. It covers, among other things, licensing, disclosure requirements, prevention of market abuse, and environmental sustainability requirements. TFR is the implementation of the FATF’s “Travel Rule”, which is the requirement, in most circumstances, to identify information on the sender and receiver in crypto transactions.
In this entry, we outline the key remaining steps of this legislative journey before full implementation. In our next entry, we will unpack the enumerated obligations for crypto asset service providers and stablecoin issuers, as well as how to prepare for MiCA/TFR implementation, including transitioning to MiCA if you are already registered or licensed in an EU country.
Where is the finishing line – or when can we expect full implementation?
The EU still has a few hills to climb before the legislative process reaches the finishing line. These include a final vote at the EU Parliament Plenary, translation of the final text into EU official languages, and publication in the Official Journal.
Should there be no further bumps on the road, both MiCA and TFR are expected to enter into force in Q1 2023. However, the entry-into-force date is not the same as the date when all the rules start applying. For that, two key timelines are particularly relevant to crypto asset service providers, crypto asset and stablecoin issuers…
Featured News
European Music Streaming Firms Rally Against Apple’s Proposed Remedies
May 9, 2024 by
CPI
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI