Digital finance: MICA vote in the European Parliament

02/05/2022

The European Parliament's Committee on Economic and Monetary Affairs (ECON) voted on 14 March 2022 on the Parliament's final version of the MICA regulation on new digital assets.

This last version of the Parliament did not retain the amendment consisting in banning crypto-currencies based on the reputedly energy-intensive "Proof of Work" technology such as Bitcoin or Ether. This bill still has to pass the trialogue stage between the European Commission, Council and Parliament before being definitively adopted, and should come into force by 2025.

A European regulatory initiative called “Pilot Scheme” is announced for early 2023.

It is a transitional regulatory framework designed to test the use of distributed registry technologies (DLTs) in market infrastructures. The experiment should start in early 2023 for 3 years renewable once. If the experiment is successful, it should then be regulated.

On 30 March 2022, the Council of the EU published a draft regulation of the European Parliament and of the Council on a pilot scheme for market infrastructures based on distributed ledger technology, and amending Regulations (EU) No. 600/2014 and (EU) n°909/2014 and Directive 2014/65/EU.

Head of Knowledge Management Strategy and Market Infrastructure - SGSS