European Union (EU) lawmakers
have voted in favour of the Markets in Crypto-Assets (MiCA) regulation, making
Europe the first major jurisdiction to introduce a comprehensive law to
regulate the emerging digital assets industry. The European Parliament on
Thursday overwhelmingly supported the passage of the law, with 517 votes against 38 (and 18 abstentions).
MiCA, which was first opened for
discussion in September 2020, seeks to protect European consumers, enshrine environmental sustainability and prevent
money laundering in the crypto industry. The regulation now awaits final
approval from the Council of the European Union.
The favorable vote to pass the
crypto rules comes after a debate on Wednesday during which lawmakers signaled
majority support for the law. MiCA, which is expected to go live sometime
in 2024, requires digital asset exchanges and crypto wallet providers to obtain
a license to operate within any country in the region. The regulation also
demands that stablecoin issuers hold sufficient reserves.
The Council of the European
Union and the European Parliament, the two legislative bodies of the EU, reached provisional agreements for the rules in June last year. In recent months,
the EU twice postponed the vote on the much-awaited crypto rules due
to technical delays in translating the regulation into the 24 languages of the
political bloc.
Meanwhile, lawmakers on Thursday
also voted resoundingly in favour of a separate law known as the Transfer of
Funds regulation. The regulation requires digital asset operators to identify
their customers so as to prevent money laundering.
European Union (EU) lawmakers
have voted in favour of the Markets in Crypto-Assets (MiCA) regulation, making
Europe the first major jurisdiction to introduce a comprehensive law to
regulate the emerging digital assets industry. The European Parliament on
Thursday overwhelmingly supported the passage of the law, with 517 votes against 38 (and 18 abstentions).
MiCA, which was first opened for
discussion in September 2020, seeks to protect European consumers, enshrine environmental sustainability and prevent
money laundering in the crypto industry. The regulation now awaits final
approval from the Council of the European Union.
The favorable vote to pass the
crypto rules comes after a debate on Wednesday during which lawmakers signaled
majority support for the law. MiCA, which is expected to go live sometime
in 2024, requires digital asset exchanges and crypto wallet providers to obtain
a license to operate within any country in the region. The regulation also
demands that stablecoin issuers hold sufficient reserves.
The Council of the European
Union and the European Parliament, the two legislative bodies of the EU, reached provisional agreements for the rules in June last year. In recent months,
the EU twice postponed the vote on the much-awaited crypto rules due
to technical delays in translating the regulation into the 24 languages of the
political bloc.
Meanwhile, lawmakers on Thursday
also voted resoundingly in favour of a separate law known as the Transfer of
Funds regulation. The regulation requires digital asset operators to identify
their customers so as to prevent money laundering.
