european parliament voted in favor There was overwhelming support for adopting the regulation of the Crypto Asset Market (MiCA) and the Rules for the Transfer of Crypto Assets on April 20.
The new regulatory regime will begin to take effect in 2024 and is expected to be fully implemented within the next two years. These texts are only pending final approval by the European Council before publication in the Official Journal.
Member of Parliament and Rapporteur Stefan Berger said:
“This will put the EU at the forefront of a token economy with 10,000 different crypto assets. Consumers will be protected from deception and fraud, and the sector damaged by the FTX demise will regain trust.” I can.”
EU Financial Services, Financial Stability and Capital Markets Commissioner Mairead McGuinness Said:
“We welcome today’s vote in the European Parliament to approve a comprehensive EU regulation on crypto – a first in the world. I am protecting.”
Widely regarded as the world’s first comprehensive set of rules for the cryptocurrency industry, the new cryptocurrency licensing regime received only 517 votes in favor and 38 against. The remaining 18 votes were abstentions.
MiCA covers companies providing all cryptocurrencies and crypto-related services that fall outside the scope of current financial law.
Under this rule, companies operating in the crypto industry are required to comply with rules covering “transparency, disclosure, authorization, and supervision of transactions.”
The administration will also establish a framework for issuing cryptocurrencies and regulate “public offerings” of crypto assets.
In addition, the European Securities and Markets Authority (ESMA) is tasked with identifying and tracking companies operating in the EU without a permit or found not to comply with the new rules.
Virtual currency fund transfer rules
The plenary also voted in favor of adopting new funds transfer rules that apply the “trip rule” from traditional finance to the cryptocurrency industry.
Travel regulations basically require companies that allow the transfer of funds to identify and declare their customers for anti-money laundering and terrorist financing purposes. The Travel Rule applies to all virtual currencies, including Bitcoin.
The new regulation will allow regulators to track certain cryptocurrency transfers and block suspicious transfers. According to the announcement:
“Information about the source [crypto] Assets and their beneficiaries must be “moved” with the transaction and stored on both sides of the transfer. ”
Congress said this only applies to transfers facilitated by businesses or funds transferred to public wallets controlled by a centralized entity such as an exchange, and that transfers between two individuals are not subject to these rules. clarified that it is excluded from
It first appeared on CryptoSlate after the EU’s MiCA crypto regulatory framework passed a final parliamentary vote.