Deputies voted for the introduction of new rules in the digital asset industry in the European Union
Members of the European Parliament voted for the adoption of the bill on the regulation of cryptocurrencies Markets in Crypto-Assets (MiCA). The EU has become one of the first jurisdictions in the world to introduce comprehensive rules on crypto assets, consumer protection, financial stability and innovation, the European Commission said in a statement .
Historic day for crypto in Europe!
Today @Europarl_EN gave its final green light to #MiCA. The EU is becoming one of the first jurisdictions in the world to introduce comprehensive rules on crypto-assets, protecting consumers, financial stability & innovation. #DigitalFinanceEU pic.twitter.com/cWF1Nv0Fr5
— EU Finance 🇪🇺 (@EU_Finance) April 20, 2023
The MiCA project, the main provisions of which were agreed upon last year, will allow crypto exchanges and companies providing services for the storage of cryptocurrencies in a legal way to offer their products in the EU. The document also establishes the rules for the operation of stablecoin issuers.
The @Europarl_EN's adoption of #MiCA is a pivotal moment for crypto regulation. 🇪🇺
This comprehensive framework will give crypto organizations the confidence to invest and grow in the region. https://t.co/tYhJW8fBpX
— Coinbase (@coinbase) April 20, 2023
After the entry into force of the law, crypto companies will have to be registered in one of the member states of the bloc, which will allow them to work throughout the European Union.
The law will enter into force in July, after it is officially approved by 27 member countries of the bloc, European Commissioner Mairead McGuinness expects, Bloomberg reports . At the same time, certain provisions of the act will come into force gradually: for example, the rules governing stablecoins will apply from July 2024.
An ambitious proposal that would give the European Union its first regulations to control the cryptocurrency business received final approval from European lawmakers on Thursday.
The approval of the EU’s Markets in Cryptoassets, or MiCA, regulation followed the failure of several major firms, including the cryptocurrency exchange FTX, and marks the first time that governments have attempted to regulate the emerging industry on this scale.
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) will ensure that crypto platforms comply with the rules and use the necessary risk management processes.
Separately, the deputies of the European Parliament voted for the adoption of a law on the regulation of transfers. This document requires operators of cryptocurrency platforms to identify their customers in order to prevent money laundering.
The European Union became the first significant region in the world to enact a complete crypto law on Thursday, passing Markets in Crypto-Assets (MiCA) by a vote of 517 to 38, with 18 abstentions.
The Transfer of Funds regulation, a separate piece of legislation that requires cryptocurrency providers to identify their customers in an effort to stop money laundering, was approved by the European Parliament 529 to 29 with 14 abstentions.
The decision was made in response to a debate on Wednesday during which legislators mainly backed proposals to require crypto wallet providers and exchanges to obtain licenses in order to operate across the EU as well as issuers of stablecoins pegged to the value of other assets to keep adequate reserves.
✅ I welcome the European Parliament’s vote today to approve comprehensive EU rules on crypto: a world first.
The rules will start applying from next year. We’re protecting consumers and safeguarding financial stability and market integrity. pic.twitter.com/cdn58rb9FA
— Mairead McGuinness (@McGuinnessEU) April 20, 2023
