The European Union Council is in the process of finalising the the digital finance package: the ‘Regulation on Markets in Crypto Assets' (MiCA) and the ‘Digital Operational Resilience Act' (DORA).
According to a statement on its website, the Council adopted its position on two proposals, MiCA, and DORA, the function of which would be the creation of a regulatory framework for crypto-assets.
A proposal in the package outlined the importance of regulation for cryptoassets in the EU:
"A dedicated and harmonised framework is therefore necessary at Union level to provide specific rules for crypto-assets and related activities and services and to clarify the applicable legal framework," "Such harmonised framework should also cover services related to crypto-assets where these services are not yet covered by Union legislation on financial services."
The MiCA framework would enable crypto firms in the EU to expand by providing a license , while DORA to prevent and mitigate cyber threats. Both are part of the Union’s larger digital finance initiative.
Andrej Šircelj, Minister for Finance of Slovenia, provided a statement on the creation of the proposals, noting:
“Digital finance is an increasingly important part of Europe’s economic landscape. It is essential to create a stimulating environment for innovative businesses while mitigating the risks for investors and consumers. I think today’s agreement strikes the right balance between the latter. Both files are a priority for the Presidency and we now hope for a quick agreement with the European Parliament on these proposals.”
The commission came forward with the package back in 2020, noting at the time:
“This package bridges a gap in existing EU legislation by ensuring that the current legal framework does not pose obstacles to the use of new digital financial instruments and, at the same time, ensures that such new technologies and products fall within the scope of financial regulation and operational risk management arrangements of firms active in the EU.”
The European Council and Parliament will now take these proposals and enter into negotiations before the proposals are ratified into law.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.