European Council Approves Crypto Regulation Bill

investopedia.com:

The European Union (EU) has taken a major step forward on regulating cryptocurrency, with the European Council approving comprehensive Markets in Crypto-Assets (MiCA) regulation on Oct. 5. The development marks another significant action taken by European authorities to ensure that the crypto market plays by their rules. The bill awaits approval by the European Parliament; a vote is scheduled for Oct. 10.

Once enacted, the bill is likely to have a massive impact on the crypto market because of its broad reach. Among the many realms it addresses are the prevention of money laundering, consumer protection, the accountability of crypto companies, the environmental impact of the industry, and stablecoins.

The controversial MiCA law is sure to spark crypto industry debate. It may also be just the first in a series of changes coming to the global crypto market. The European regulation lays the foundation for what could be a new era in operations for major crypto entities.

The Markets in Crypto-Assets bill is comprehensive regulation that aims to bring the asset class firmly under the supervision of the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA).  

A debate over whether cryptocurrency is a security or a commodity is also addressed in the bill. Under MiCA, cryptocurrencies are divided into four categories: crypto-assets, utility tokens, asset-referenced tokens and electronic money tokens (e-money). Cryptocurrencies will be regulated in accordance with their classification. 

The bill's broad focus makes it likely to have a powerful influence on the global crypto market. Among the many areas it attempts to oversee are the prevention of money laundering, consumer protection, crypto