The European Union parliament has approved a set of comprehensive rules to regulate the use of cryptocurrencies.
The parliament on Thursday voted 517-38 in favour of a new crypto licensing regime, MiCA, with 18 abstentions, making it the first major jurisdiction in the world to introduce a comprehensive crypto law.
The European Parliament also voted 529-29 in favour of a separate law known as the Transfer of Funds regulation, which requires crypto operators to identify their customers in a bid to halt money laundering, with 14 abstentions.
The vote follows a Wednesday debate in which lawmakers largely supported plans to make crypto wallet providers and exchanges seek a license to operate across the bloc and require issuers of stablecoins tied to the value of other assets to maintain sufficient reserves.
In a tweet, the European Commission’s Mairead McGuinness described the vote as a “world first” for crypto rules.
✅ I welcome the European Parliament’s vote today to approve comprehensive EU rules on crypto: a world first.
The rules will start applying from next year. We’re protecting consumers and safeguarding financial stability and market integrity. pic.twitter.com/cdn58rb9FA
— Mairead McGuinness (@McGuinnessEU) April 20, 2023
“We’re protecting consumers and safeguarding financial stability and market integrity,” McGuinness said. “The rules will start applying from next year.”
In a statement released by the European Parliament, Stefan Berger, the lawmaker who led negotiations on the law, said the rules put the EU “at the forefront of the token economy.”
“The European crypto-asset industry has regulatory clarity that does not exist in countries like the U.S.,” Berger said. “The sector that was damaged by the FTX collapse can regain trust.”
The Markets in Crypto Assets regulation was first proposed by the European Commission in 2020, and to pass into law has to be approved by the parliament and the EU’s Council, which represents the bloc’s member states. Its main provisions start to apply just over 12 months after publication in the EU’s official journal, likely in June.
