The European Council has approved the Markets in Crypto-Assets (MiCA) regulation following a vote on Tuesday.

Finance ministers from 27 member states voted in favour of the MiCA bill, as well as revisions to numerous regulations and directives related to the new legislation, Cointelegraph reports.

In addition, another two pieces of legislation – including regulation on data accompanying funds’ transfers and certain crypto assets – were also given the green light by the European Parliament within the adoption of MiCA.

The European Parliament adopted the MiCA legislation formally on 20th April, ahead of final European Council approval.

The legislation outlines regulatory requirements and guidelines for using cryptocurrencies across the EU, as well as related activities. The legislation includes a broad range of cryptocurrencies, stablecoins, digital assets and utility tokens.

The bill needs to be published in the Official Journal of the European Union within the next part of the process for MiCA to become EU law. MiCA will come into effect in a year, as such, the regulations will become law in mid-2024, the Cointelegraph report adds.

MiCA was first put forward by the European Commission in September 2020, but has faced a series of setbacks during the legislative process. 

On the whole, the legislation has been welcomed by crypto service providers and supporters, as it creates a single market environment within Europe in terms of operating procedures and regulatory requirements.

Some of the key elements for MiCA legislation include authorisation and registration requirements for crypto issuers, wallet providers and exchanges.

Furthermore, crypto custody services need to guarantee adequate safety measures to tackle potential cybersecurity issues, and stablecoin issuers need to meet specific security and risk mitigation requirements.