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EU Parliament Votes for New Crypto Rules

The European Parliament has voted to approve the rules for licensing cryptocurrencies in the crypto assets market (MiCA) as binding.

EU Parliament Votes for New Crypto Rules

Source: motionarray.com

517 MEPs voted for the introduction of these rules. Also, 38 deputies opposed the proposed licensing regime. The rules were previously approved by the EU member states.

The regulatory framework aimed at universal regulation of the crypto sector provides that companies operating in this area must obtain a license granting the right to provide services. Also, the presence of a license is a guarantee that the firm complies with the anti-money laundering rules and does not contribute to the financing of terrorist groups.

Another norm stipulated by the rules adopted by the European Parliament is the obligation of companies to disclose information about the volume of energy consumption. The legislators stated that this commitment is necessary to implement efforts to reduce the carbon footprint resulting from the functioning of the crypto asset industry.

The European Banking Authority and the European Securities and Markets Authority (ESMA) will be responsible for ensuring that crypto platforms comply with the rules

In a separate vote, 529 MEPs supported the regulation of the transfer of funds, which provides that companies operating in the crypto industry must identify their customers. Also, 29 voting participants did not support this initiative.

EU Commissioner for Financial Services Mairead McGuinness called on other countries to follow the example of the European Union in regulating the crypto industry. She also suggested that if FTX were subordinated to European jurisdiction, many crypto exchange practices would be suppressed.

Anna Carrier, the legal consultant at Norton Rose Fulbright, said the industry faces several months of hard work to take MiCA compliance measures.

The texts of the rules must be officially approved by the Council before publication in the Official Journal of the EU. They will come into force in 20 days and will be valid for the next two years.

Stefan Berger, the leading MEP on MiCA regulation, said that the introduction of a regulatory system will allow the EU to take a place at the forefront of the token economy. He also stated that thanks to the rules, consumers will be protected from fraudulent activity and any deception. Also, according to the deputy, the initiative of European lawmakers will allow the industry affected by the collapse of FTX to regain trust.

Experts suggest that the presence of a single regulatory framework will make the EU a more attractive activity space for companies that deal with crypto assets.

At this time, regulators in the United States are talking about the need to create a regulatory framework for regulating the cryptocurrency industry. Digital asset market participants state that the current approach of the Securities and Exchange Commission to the consideration of control issues in this area is opaque.

As we have reported earlier, SEC Proposes Tougher Rules for Crypto Custodians.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.