We live in the days when the issue of regulation is the hottest topic in the crypto money world. Accordingly, each move has its own value. The last move came from the European Union, which we have been talking about for months. In this context, the latest development regarding the crypto money markets points to a positive situation. Here are the details.
Cryptocurrency law approval ok
When we look at Kriptokoin.com, the European Union took an important step on Wednesday. Officially enacted the landmark Crypto Asset Markets (MiCA) regulation. This move makes the block the world’s first major jurisdiction with rules for the crypto industry. The law was approved by Roberta Metsola, President of the European Parliament, and Peter Kullgren, Swedish Minister of Rural Affairs. In addition, the law aims to combat money laundering. On the other hand, there is a separate law that requires crypto providers to verify their customers’ identities when transferring funds.
The announcement of this milestone was made via Twitter by the Swedish government, which is currently leading the legislative debate in its capacity as the rotating EU presidency. A representative from the parliament confirmed that the newly enacted laws include MiCA, funds transfer rules and two unrelated trade regulations with Ukraine.
Facilitated trade for Ukrainian products, and stronger rules to prevent financial crime through crypto-assets – this will
be the effect of two of the new EU laws negotiated under #EU2023SE.Signed by @peterkullgren and @EP_President today, they now enter into force. pic.twitter.com/RdzE7hvrYE
— Swedish Presidency of the Council of the EU (@sweden2023eu) May 31, 2023
MiCA will take effect in June
The Crypto Asset Markets (MiCA) regulation, recently enacted by the European Union, will enter into force a few weeks after its publication in the EU’s official journal in June. This regulation provides a comprehensive framework for cryptocurrency exchanges and wallet providers. It will also offer them a license to operate in the 27-member block. Additionally, stablecoin issuers will be required to maintain adequate reserves. These provisions are scheduled to be implemented after 12 to 18 months.
MiCA was first put on the agenda by the European Commission in 2020. At the time, the inclusion of environmentally sensitive substances in the law was controversial. Because Bitcoin is in the market with mining based on the Proof of Work algorithm. This situation is also on the agenda of environmentalists due to the criticism of phase energy consumption. The industry has generally welcomed these provisions. But the focus is now shifting towards the next phase of EU cryptocurrency regulation. It is possible that future laws will address different issues in the crypto space. Accordingly, it is expected to address emerging areas such as staking, decentralized tokens, and decentralized finance.
There are also different laws
In parallel with the MiCA, the EU has also enacted a separate anti-money laundering (AML) law. On the other hand, this law requires Cryptocurrency providers to verify the identities of their customers when transferring funds. It also underlines the EU’s determination to ensure the integrity of its financial system.
The simultaneous enactment of MiCA and AML law demonstrates the EU’s balanced approach to cryptocurrency regulation. Thus, while risks are reduced, innovation is encouraged.
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