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Regulation of cryptocurrencies in the EU

Regulation of cryptocurrencies in the EU

Recently, the EU Parliament approved the licensing of cryptocurrencies and the rules for transferring funds. Legislators voted for a new cryptocurrency licensing regime – MiCA. A separate law, known as the Funds Transfer Ordinance, has also been enacted, which requires crypto operators to identify their customers (in an attempt to stop money laundering).

The vote followed debate in which lawmakers heavily supported plans to force cryptocurrency wallet providers and exchanges to seek a license to operate across the block and require issuers of stablecoins pegged to the value of other assets to maintain sufficient reserves.

In a tweet, Mairead McGuinness of the European Commission called the vote “a first in the world” on cryptocurrency rules.

“We protect consumers, ensure financial stability and market integrity,” McGuinness said. “The rules will start to apply from next year.”

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