At a Wednesday meeting, diplomats representing the bloc's member governments in the EU's Council signed off on the text of laws which were the subject of political deals struck in June, apparently without further discussion, a source briefed on the talks told CoinDesk.
MiCA introduces the first-ever licensing regime for crypto wallets and exchanges to operate across the bloc and imposes reserve requirements on stablecoins that are intended to avoid Terra-style collapses. A separate law on funds transfers requires wallet providers to check their customer's identity, in a bid to cut money laundering.
Industry lobbyists were hopeful they could still clarify measures in MiCA that they feared could limit the trading of U.S. dollar-denominated stablecoins within the bloc. But softer legal language that leaked two weeks ago appears to have been rebuffed by countries such as France that are keen to avoid incursion into the sovereign role of the euro.
The text must also be formally agreed to by lawmakers at the European Parliament and is expected to be published in the EU's official journal in the early part of next year before taking effect in 2024.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.