EU legislators give Mica crypto legislation final approval
EU legislators give Mica crypto legislation final approval
The Parliament of the European Union has officially approved the Market in Cryptoassets (Mica)-a regulatory framework that could set clear standards in the industry.
The approval takes place about five months after the notorious FTX collapse and is intended to protect investors from such failures.
"Strict rules are urgently required"
The EU Parliament tuned 517-38 in favor of the new licensing directive for cryptocurrencies-mica. It also supported a separate law that obliges the operator of digital assets to identify their customers with every transfer of their funds to prevent money laundering.
The so-called "travel sail", which was used in traditional finance, will cover cryptocurrency transactions and provide customers with information about the origin of the assets and the beneficiaries. It also applies to transfers worth over € 1,000 (around $ 1,100) from crypto wallet addresses to private users. Transactions from person to person are not covered.
Mairead McGuinness-EU Commissioner for Financial Stability, Financial Services and the Capital Market Union- praised as the world's "first comprehensive cryptor rules". She said that such standards were of crucial importance due to the numerous crashes and scandals that brought the industry to a standstill last year:
"We take security measures that would prevent companies that work on the EU market from participating in some of the practices that have led to the collapse of certain cryptoasset operators. As we have seen in the past few months, strict rules and surveillance are urgently needed, since we are urgently needed because we have collapsed through projects such as FTX, TERRA Luna, Celsius and Voyager have experienced. ”
Legislation for StableCoins is expected to come into force from July 2024, while the more comprehensive rules for crypto providers should come into force from January 2025.
CZ praises the new rules
Numerous industry leaders have pointed out in the past few months that adequate monitoring of the cryptocurrency sector is a must. In a recently published tweet, Changpeng Zhao - CEO von Binance, better known as CZ - emphasized the step of the EU and argued that it offered consumers more protection and promoting the innovation of the investment class.
The European Parliament voted for the implementation of mica.
This means that one of the world's largest markets introduces tailor -made regulations for crypto to protect users and support innovations.
The fine details will play a role, but overall we think that this is a pragmatic solution to ...
- cz 🔶 binance (@cz_binance) 20. April 2023
Brian Armstrong-CEO of Coinbase-Recently pushed to re-apply to the industry, since the nation would notify one otherwise one Drainage of companies and talents could become. He went further and indicated that his stock exchange could move should remain unchanged.
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