© Benzinga'sDuring Wednesday's debate, members of parliament from various political parties in the European Union expressed their support for the main regulation of the market for crypto-assets (MiCA).
This suggests that the licensing bill should pass without a hitch in a vote scheduled for Thursday, Coindesk reported.
MiCA, whose basic policy framework was established last year, will allow cryptocurrency exchanges and digital wallet providers to offer regulated services across the EU.
It also forces stablecoin issuers to have sufficient reserves. The main political groups in the European Parliament, including the European People's Party, Socialists and Democrats, Reformed Europe and Conservative and Reformist Europe welcomed the proposed solution.
If the members of these parties vote in favor, the law must obtain the necessary majority to pass it.
"Europe is proud of the step we took today," said Lydia Pereira of the center-right European People's Party, the largest group in the European Parliament.
The European Commission's Mairead McGuinness stressed the need for strong regulation and supervision, citing the recent collapse of crypto and stablecoin company TerraUSD (CRYPTO: LUNA).
Provisions to protect consumers, prevent market abuse and fight money laundering are also mentioned.
Germany's center-right MEP Stefan Berger , who led parliamentary talks on MiCA, said the deal aimed to "restore the trust broken by the FTX affair" and position the EU as a leader in the token economy.
Lawmakers have also shown support for a separate and controversial anti-money laundering measure called the money transfer rule, which requires crypto service providers to collect user credentials.
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The Green Party's Ernest Urtasun said the adoption of the rule marked the end of the "Wild West" era for the world of unregulated cryptoassets, which previously served as a haven for fraudsters and criminal networks.
Before these measures come into force, they must be formally approved by the European Parliament representing the member states and the Council of the European Union.
Administrative delays in completing and returning texts slow down this process.
After publication in the EU Official Journal, expected in June, the MiCA rules will come into force in 12 to 18 months.
This timeline could make the EU the first major jurisdiction to adopt full cryptocurrency legislation.
Meanwhile, the CEO of YouHodler and Ilya Volkov told Benzinga that several questionable issues arose from the first drafts, such as discussing the significant environmental impact of the evidence-consensus mechanism used for verification. NFT transactions or classifications such as B. Definition of Cryptocurrency Assets.
"Fundamentally - there have always been questions about the definition of cryptoassets and what distinguishes cryptoassets from the traditional MiFID definition of financial instruments and how these differences arise. However, I am confident in terms of introducing more precise definitions," he said.
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