The European Parliament has approved the Markets in Crypto-Assets {MiCA} law surrounding crypto transactions with overwhelming support.
This makes the E.U. the first major jurisdiction in the world to introduce comprehensive crypto guidelines.
MiCA regulations approved
EU lawmakers on April 20 voted 517-38 in favor of a new crypto licensing regime, MICA. The EU parliament also voted 529-29 on a separate law known as the Transfer of Funds regulations which requires crypto firms to identify their customers to reduce money laundering.
This is significant because it is the first comprehensive rule set for the crypto industry anywhere.
With over 10,000 distinct tokens and cryptos, the EU is now at the forefront of the token economy. Consumers will be shielded from deception and fraud, and the trust-shattered industry can begin to recover.
Stefan Berger, reporter and lawmaker.
Mairead McGuinness, European Union Commissioner for financial services, financial stability, and the Capital Markets Union, tweeted that the European Parliament’s vote would establish sweeping regulations for crypto in the E.U. as a first in the world.
The scope of MiCA will include all cryptos and businesses providing crypto-related services not already regulated by existing financial laws.
The guidelines stipulate that enterprises in the crypto industry must follow procedures for “transparency, disclosure, authorization, and supervision of transactions.”
In addition to regulating “public offers” of crypto assets, the regime will set up a structure for issuing crypto.
Moreover, it will be the European Securities and Market Authorities’ (ESMA) responsibility to monitor and report on businesses operating illegally or otherwise not following the new regulations in the European Union.
E.U. approves crypto funds transfer act
The “travel rule” from traditional finance will be applied to the crypto business thanks to the new Transfer of Funds regulation, which was approved by the plenary.
The travel rule requires companies facilitating money transfers to collect and report client information to combat illicit cash laundering and financing terrorist activities. BTC is included in the new regulation for crypto transactions abroad.
The new rules allow authorities to monitor and halt any questionable crypto transactions.
E.U. Parliament clarified that this would only apply to transactions assisted by businesses or monies delivered to public wallets managed by centralized bodies like an exchange and that transactions between individuals would be exempt.