The Delay of MiCA’s Final Vote in the European Parliament

According to reports, CoinDesk quoted insiders as saying that the final vote of the European Parliament on the encryption bill MiCA is expected to be postponed to April 20. A document released on Wednesday showed that only one expected amendment had been submitted before the crucial final vote.

The final vote of the European Parliament on the encryption bill MiCA is expected to be postponed to April 20

The implementation of the Markets in Crypto-Assets (MiCA) regulation has been a topic of heated debate within the European Union. With its final vote looming, insiders reveal that the vote is expected to be postponed to April 20. This article discusses the implications of the delay and what to expect in the coming weeks.

What is MiCA?

MiCA is a proposed regulatory framework presented by the European Commission in September 2020. It aims to establish a comprehensive set of rules for crypto-assets, including stablecoins and utility tokens. MiCA’s framework covers a range of requirements that cryptographic assets must meet before they can be marketed or traded within the EU.

The Postponement of the Final Vote

Reports claim that the final vote on MiCA, scheduled for March 24, is expected to be postponed. According to CoinDesk, insiders reveal that the delay is mainly due to the concerns the European Parliament has over the regulation.
A document released on Wednesday stated that only one expected amendment had been submitted before the crucial final vote. However, despite the limited number of amendments, experts believe that the European Parliament is considering delaying the vote to allow sufficient time to debate and address concerns over the regulation.

Key Concerns Raised Over MiCA

MiCA’s regulatory framework has been criticized on different fronts. Concerns have been raised over issues ranging from data protection to the prevention of innovation within the cryptocurrency market.
One of the significant concerns raised over MiCA is data protection. Some experts urge lawmakers to specify rules for protecting data gathered by the EU’s centralized database. Some also recommend a decentralized system under the regulation to provide a higher level of data privacy and autonomy.
Another issue is that the regulation may inhibit innovation within the cryptocurrency market. Opponents of the proposals argue that MiCA’s requirements may cause a brain drain of world-leading crypto companies from the EU to other more crypto-friendly jurisdictions.
Additionally, the cryptosphere is concerned that MiCA regulations may prioritize traditional banking structures over innovation and disrupt business models and innovation in decentralized systems.

What to Expect in the Coming Weeks

The European Parliament’s delay of the final MiCA vote is a significant indication of its concerns over the regulation’s implementation. The detailed deliberations demonstrate that the lawmakers acknowledge the complexity of the regulations involved and their potential impacts.
However, given the significance of the regulation, industry experts expect speedy implementation after the code is cleared. Some experts predict that the postponement of the vote will have little impact on MiCA’s adoption unless significant changes are made that may affect cryptocurrencies’ use.
Another possibility is that the delay may trigger more discussion and consultancy with cryptocurrency industry stakeholders in shaping the regulations that will adequately protect the interest of the investors and the broader public.

Conclusion

MiCA is a crucial regulation that will shape the future of the cryptocurrency market within the EU. However, its implementation has faced significant criticism from industry experts, who cite concerns ranging from data protection to the prevention of innovation. The European Parliament’s delay of the final vote is significant as it shows that lawmakers are not taking this bill lightly. The delay may trigger more discussions and consultations with crypto industry stakeholders to shape regulations that work best for everyone.

FAQs

Q: What is MiCA?
A: Markets in Crypto-Assets (MiCA) is a proposed regulatory framework covering a range of requirements that cryptographic assets must meet before marketing or trading in the EU.
Q: Why is the implementation of MiCA facing criticism?
A: Concerns have been raised on different fronts about the regulation. Such concerns include the potential for data protection breaches and stifling innovation in the cryptocurrency market.
Q: Will the delay significantly impact MiCA’s adoption?
A: Industry experts believe that the delay will have little impact on the regulation’s adoption unless significant changes are made that may affect cryptocurrency use.