Elections for the 700+ members of the European Parliament has kicked off on 6 June 2024, with the outcome likely to usher in significant changes across the cryptocurrency industry.
MiCA Regulation A Hot Topic As EU Elections Get Underway
The elections are taking place as the EU’s crypto rules, Markets in Crypto Assets Regulation (MiCA), are due to go into effect.
The Parliament’s Economic and Monetary Affairs Committee, which has played a key role in amending and creating cryptocurrency legislation over the last few years, was one of the major players behind the creation of MiCA, representing the crypto asset regulatory market.
The crypto industry will continue to keep a close eye on the elections to see who will be heading up key positions within the new parliament.
If key legislators, advocating for crypto regulation, do in fact lose their seats in the new 720-member parliament, it could lead to a period of uncertainty for the crypto industry’s policy agenda.
EU elections ‘wildcard’ could pave the way for first Ether ETF: The outcome of the elections will be a pivotal moment for the implementation of the MiCA regulatory framework and the approval of the first spot Ether ETF. https://t.co/fODd3vXx8h #CryptoNews #crypto #Bitcoin pic.twitter.com/zSMlGfATJR
— @zimisss (@zimisss) June 3, 2024
Several pending legislative bills dealing with crypto are still up in the air as they were not finalised before the elections began.
One high-profile example is the digital Euro, currently overseen by German European Parliament member Stefan Berger. If Berger is not re-elected, the digital Euro will require a new parliamentary leader.
Dependent on the election results, new EU Parliament members will be required to oversee other legislation such as payment services and financial data. The Payment Services Regulation is crucial for determining whether issuers of fiat-backed stablecoins and digital assets are required to comply with more even stricter measures than those proposed by MiCA.
The MiCA has laid out the licensing requirements for stablecoin issuers and crypto companies to protect consumers. It will be implemented in stages, starting at the end of June. According to the Digital Operational Resilience Act 2025, financial institutions, including crypto service providers, will also need to adhere to a stringent list of IT security requirements.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
