The European Union’s planned framework dedicated to the regulation of crypto has made a significant stride towards official rollout, with the European Council offering greenlights to two virtual asset proposals. 

Specifically, the European Council – the entity providing guidance to the EU’s political agenda – reportedly granted approval for the proposals of the Markets in Crypto Assets (MiCA) framework and the Digital Operational Resilience Act (DORA).

Following the development, the European Council and Parliament may now be able to open debates on the initiative, prior to the official approval to become regulation. 

The MiCA framework is reportedly created with a target of providing security for investors and consumers against fraud, including guarantees that investors’ money should a hack occur.

If the authorities believe that particular currency exchange platforms are serving as threats to investors or users, stricter regulations will be applied to them under MiCA.

The remaining goal of the MiCA is to provide governing for stable coin issuers, after Facebook expressed the desire to come up with a stablecoin, previously went by the name “Libra,” backed by a basket of fiat currencies.

The European Central Bank (ECB) reportedly shared that the new regulations will reportedly come up with comparable cultural standards catering to payment service providers, for making sure users are safe. 

Per the latest announcement from the ECB, the framework will further carry provisions dealing with company governance and risk management, together with bans on offering certain services, nominally high-risk payment instruments.

The European Council’s own MiCA negotiation mandate – a 400-page document – reportedly recommended that the EU will employ a more engaged attitude towards asset-referenced token issuers.