The European Parliament approved the Markets in Crypto-Assets [MiCA] bill governing crypto transactions with overwhelming support. As a result, the E.U. has become the first primary jurisdiction in the world to introduce comprehensive crypto guidelines.
Approval of MiCA regulations
MICA, a new crypto licensing regime, was passed by EU lawmakers by a vote of 517 to 38 on April 20. Separately, the EU parliament voted 529-29 on the Transfer of Funds Regulations, which require crypto firms to identify their customers to reduce money laundering. It is significant because it is the first comprehensive rule set for the crypto industry.
According to a tweet from Mairead McGuinness, the European Union’s commissioner for financial services, financial stability, and the capital markets union, the European Parliament’s vote will create the first-ever comprehensive crypto laws in the E.U.
All cryptocurrencies and companies offering services connected to cryptocurrencies that are not already covered by existing financial legislation would fall within the purview of MiCA.
The recommendations state that businesses in the cryptocurrency industry must adhere to “transparency, disclosure, authorization, and supervision of transactions.”
The regime will establish a system for creating a cryptocurrency and regulating “public offers” of crypto assets.
Furthermore, it will be the European Securities and Markets Authority’s (ESMA) job to monitor and report on enterprises operating illegally or otherwise failing to comply with the new European Union legislation.
The European Union has approved the Crypto Fund Transfer Act
The new Transfer of Funds regulation adopted by the plenary will apply the “travel rule” from conventional finance to the cryptocurrency industry.
The travel rule requires enterprises that facilitate money transfers to gather and report customer information in order to prevent illicit currency laundering and terrorism financing. BTC is included in the new international crypto transaction rules.
The new rules enable authorities to monitor and halt any suspicious cryptocurrency transactions.
The European Union Parliament stated that this would only apply to transactions facilitated by corporations or cash supplied to public wallets administered by centralized organizations such as an exchange and that individual transactions would be exempt.