The Council of the European Union continues to work to establish a general and common regulatory framework for cryptocurrencies.
The European Union is working on two proposals, the “Regulation on Markets in Crypto Assets (MiCA)” and the “Digital Operational Flexibility Act (DORA)”, which provide a regulatory framework for cryptocurrencies aimed at consumer protection and mitigation of cyber threats.
MICA and DORA, which are part of the European Council’s Digital Finance package, aim to create common rules aimed at protecting investors across EU member states, rather than the crypto currency approach that differs from country to country.
The MICA, adopted by the European Council, regulates cryptocurrencies widely, requiring crypto companies to have a license to be transparent and fair in their operations. The Council added that the MICA proposal does not apply to NFTs.
DORA, another proposal accepted by the European Council, deals with the management of the risks posed by information and communication technology.
DORA establishes a uniform reporting framework for any event, as well as mandating testing of systems to prevent cyber risks.
It also empowers European regulators to take a closer look at a firm’s use of third-party service providers for information or communications technology.
Negotiations will be held in the Parliament regarding the MICA and DORA proposals accepted by the European Council. If approved, the regulations will also be officially adopted.