Council of the European Union advances discussions on MiCA and DORA regulations
The Council of the European Union has taken a position on two proposals – the Crypto Asset Markets Regulation (MiCA) and the Digital Operational Resilience Act (DORA) – which are part of the European Union’s much-discussed digital finance package. As a result, the Council has given itself a negotiating mandate for trialogue talks with the European Commission and the European Parliament.
Through the MiCA proposal, Brussels says it wants to establish a regulatory framework for crypto assets that would foster innovation and harness their potential in a way that preserves financial stability and protects the interests of investors.
That said, industry watchers have also warned that the proposal could make it more difficult for smaller players to enter the European Union crypto market. Other points of concern relate to the proposed requirement on regulatory authorization for stablecoins and the prohibition of interest on fiat-anchored stablecoins.
The second proposal, DORA, is designed to create a regulatory framework to cover digital operational resilience, ensuring that businesses can withstand all types of disruption and threats related to information and communications technology (ICT) in the world. aim to prevent and mitigate cyber attacks, according to the statement.
The Council is one of the legislative bodies of the EU and it comprises ministers delegated by the 27 member states of the bloc in ten different policy areas. For example, discussions on finance-related issues are led by 27 finance ministers representing their respective member states. With the European Parliament, the body amends and approves the proposals of the European Commission, which has the legislative initiative.
âDigital finance occupies an increasingly important place in the European economic landscape. It is essential to create a stimulating environment for innovative businesses while mitigating risks for investors and consumers. I think today’s agreement strikes the right balance between them, âsaid Andrej Å ircelj, Slovenian Minister of Finance, quoted in a statement.
“Both dossiers are a priority for the Presidency and we now hope for a swift agreement with the European Parliament on these proposals,” said the Minister of Finance.
The Council and the European Parliament, which is the EU’s only directly elected institution with 705 legislators elected in 27 member states, will now begin trilogue negotiations on the two proposals. This means that the Parliament, the Council and the Commission will hold tripartite meetings which could end with a provisional agreement.
This potential agreement would be informal and would have to be formally approved by each of the three institutions. In parliament, such a provisional agreement must be approved by a vote in committee, after which it is confirmed in a plenary vote by its 705 deputies.
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