The Council of the European Union is preparing to formally adopt the two crypto proposals submitted as part of the digital finance package. As a result, the council will enter negotiations with the European Parliament to approve the bills.
The two bills: ‘Markets in Crypto Assets’ (MiCA) and the ‘Digital Operational Resilience Act’ (DORA) aims to create unified rules on cryptocurrencies for the countries belonging to the European Union.
Of the two bills, MiCA is a comprehensive cryptocurrency regulation proposed by the EU in September 2020. A revision made on the bill in June 2021 exempted NFTs from regulations and required companies that provide crypto services within the EU to set up their bases in EU member states.
At the same time as MiCA, the European Council has also adopted an official position on the “Digital Operational Resilience Act” (abbreviated as DORA). DORA aims to establish a framework that will prevent and mitigate cyber-attacks.
While the Council exempted NFTs from regulations, the bills proposed a stringent policy on stablecoins and wanted to develop dedicated rules to regulate the financial stability of Stablecoin and its risks to sovereignty of the fiat currency.
Apart from two proposed bills, the digital finance package included a proposal on distributed leverage technology (DLT) and the Council’s overall strategy related to crypto asset regulation.