The European Union’s (EU) Economic and Monetary Affairs Committee voted 28 to 1 in favour of the Markets in Crypto Assets regulation (MiCA), a uniform legal framework for crypto-assets in the EU.

Under the MiCA, entities issuing and trading crypto-assets will be subject to transparency, disclosure, authorisation and transaction rules to ensure consumer protection.

The framework will also regulate public offers of crypto-assets and crypto-assets not covered by existing financial services legislation, though NFTs offered to the public at a fixed price will be exempted.

Crypto-assets service providers (CASPs) will be required to disclose their energy consumption, and a public register for non-compliant CASPs providing services in the EU without authorisation will be set up.

According to CoinDesk, the MiCA will enable CASPs such as crypto wallet providers to market themselves across the EU if they meet the necessary requirements.

The text of the MiCA was first finalised in mid-2022 and is expected to enter into force in 2024.

“MiCA is a European success. We are the first continent to have a crypto-asset regulation. In the Wild West of the crypto-world, MiCA will be a global standard setter,”

said Stefan Berger, Member of the European Parliament.