The European Parliament approves comprehensive framework for crypto regulation

Lawmakers in the European Union adopted a new crypto licensing regime, Markets in Crypto-Assets (MiCA). The European Union has become the first major jurisdiction in the world to adopt comprehensive rules for crypto assets and consumer protection. This was reported in a message published by the European Commission.

This project, the main points of which were agreed last year, will contribute to the legalisation of crypto exchanges and companies providing cryptocurrency storage services in the EU. The document also prescribes the rules under which issuers of stablecoins should operate.

According to the news media, the enactment of the law will take place in July, immediately after it is officially adopted by 27 countries of the EU. It is emphasised that some points will come into force in stages.  For example, the rules for regulating stablecoins will be in effect starting from July 2024.

After the law takes effect, crypto companies will be required to obtain registration on the territory of one of the EU countries. This registration will give them the right to work throughout the European Union.

The European Securities and Markets Authority, as well as the European Banking Authority, will monitor compliance with the established rules.

Earlier, in order to prevent money laundering and financing of terrorism crimes, the European Parliament set a limit on crypto transfers for unverified users. In addition, the European Commission proposed to introduce new rules that will oblige all crypto companies to report their transactions to the tax authorities.