Members of the European Parliament have given final approval to a package of EU-wide regulations on crypto assets. They also endorsed the introduction of a mechanism to allow tracking of cryptocurrency transactions, which will apply to personal crypto wallets above a certain threshold.
European lawmakers endorse landmark crypto asset legislation
New common rules for the European crypto space have been given the final go-ahead by the European Union’s Parliament, the EU Parliamentary Press Service announced Thursday, as Markets in Crypto AssetsMiCAknown as the set passed with 517 votes in favor, 38 against, and 18 abstentions.
The legislation is designed to regulate the supervision, consumer protection, and environmental protection of digital assets, including Bitcoin and other cryptocurrencies, and was informally agreed with the Council, the EU’s decision-making body, in June 2022.
The legislation, arguably the world’s first comprehensive crypto regulatory package, will cover the issuance and trading of assets not regulated by existing financial services legislation.” Parliament claims that “consumers will be better informed about the risks, costs and charges associated with their operations.
The MiCA introduces licensing for crypto service providers operating in the region and establishes a registration system for non-compliant companies, with the aim of addressing the risks of market manipulation, money laundering and terrorist financing. It also aims to reduce the carbon footprint of cryptocurrencies and requires large service providers to disclose their energy consumption.
Commenting on the adoption of the legal framework, the bill’s rapporteur, Stefan Berger, said, “MiCA will protect consumers from fraud and allow the sector, which has been hurt by negative events such as the collapse of crypto exchanges FTX and other players, to regain trust. He stressed:
This will put the EU at the forefront of the token economy with 10,000 crypto assets… This regulation will give the EU a competitive advantage.
Berger noted that the crypto industry in the European Union will have regulatory clarity that does not exist in other jurisdictions, such as the U.S. The MiCA will enter into force 20 days after it is formally approved by the Council and published in the EU Official Journal.
The European Parliament approved rules for tracking crypto money transfers
In a separate vote, a majority of the 529 members of the Parliament approved additional legislation allowing the tracking of crypto transactions. This is intended to allow “always tracking” and blocking of cryptocurrency transfers if they are deemed suspicious.
This ruling applies the so-called “travel rule” from traditional finance to the transfer of