The European Central Bank (ECB) will reportedly be gearing towards finalizing the implementation of a new law, via warning European Union member states about the necessity of regulations and crypto harmonization.

Specifically, the ECB reportedly shared concerns related to the ponteial regulatory overlap between respective central banks in the EU and crypto firms, as officials are working towards the implementation of the Markets in Crypto-Assets (MiCA) framework. 

The European Parliament, European Commission and European Council reportedly reached an agreement on June 30th to generate a unified crypto regulatory framework for issuers and service providers within their jurisdictions.

Regulators from 19 EU member states will reportedly make their appearances at a supervisory board meeting in July, to talk about MiCA and its potential implementation. As soon as the implementation is completed, the legislation will make it mandatory for asset service providers to abide by particular requirements, targeting at offering safeguarding for investors, together with issuing warnings for clients regarding the potential risk of making investment in a crypto market with high volatility. 

EU officials will also have an 18-month review period to run assessments on the proposed regulatory framework and decide if it includes other crypto-associated serviecs, nominally nonfungible tokens (NFTs).

“It’s very challenging. With MiCA 18 months away, are you better to say, ‘until it’s in, do what you like, there’s no regulation’ or are you better to try to get a handle on it?”

Prior to the developing of MiCA receiving passing, financial regulators from individual European Union member states largely had to deal with crypto regulation within their own borders – though officials recently reached an agreement on forming an authority for supervising Anti-Money Laundering regulations for crypto firms. In Germany, the Federal Financial Supervisory Authority, or BaFin, is responsible for issuing licenses to crypto firms interested in offering services within the country.