The German Parliament has passed the Digitalization of Financial Markets Act in response to the upcoming EU cryptocurrency regulation MiCA
ChainCatcher news, according to Ledger Insights, the German Parliament (Bundestag) passed the Financial Market Digitalization Act (Finanzmarktdigitalisierungsgesetz of FinmadiG) this week. The parliament responded to industry demands to ensure legislation is in place before MiCAR fully comes into effect on December 30.FinmadiG not only pertains to cryptocurrencies and MiCAR but also affects other EU laws, such as DORA and the Funds Transfer Regulation. For MiCAR, it introduces the Cryptocurrency Market Regulation Act (KMAG), which replaces Germany's old cryptocurrency rules with MiCAR.Technically, MiCAR is a regulation, so local laws are not required. However, legislation must designate BaFin as the regulatory authority; otherwise, BaFin cannot issue licenses. This will allow EU companies with cryptocurrency licenses from other countries to operate in Germany, but German companies will not be able to operate in the EU.Additionally, MiCAR allows companies holding existing licenses to continue operating for up to 18 months, with the transition period determined by each jurisdiction. The new German legislation specifies one year.
