The European Parliament has overwhelmingly approved the Markets in Crypto-Assets (MiCA) law, which covers crypto transactions. The new law, approved by a vote of 517-38, sets the first comprehensive set of rules for the crypto industry. The MiCA regulations will include all cryptocurrencies and businesses providing crypto-related services that are not already covered by existing financial laws. The guidelines require transparency, disclosure, authorization, and supervision of transactions. The new law will regulate public offers of crypto assets and set up a framework for issuing crypto.
The parliament also approved the Transfer of Funds regulations, which require crypto firms to identify their customers and follow the traditional “travel rule” for collecting and reporting client information. This rule will help combat money laundering and the financing of terrorist activities. Bitcoin (BTC) is included in the new regulation for crypto transactions abroad. The new rules enable authorities to monitor and prevent any dubious crypto transactions.
However, the E.U. Parliament clarified that the new regulations would only apply to transactions assisted by businesses or monies delivered to public wallets managed by centralized bodies like an exchange. Transactions between individuals would be exempt from these regulations.
The approval of MiCA is a significant step for the crypto industry in Europe, as it will provide a comprehensive regulatory framework for the sector. The new regulations will ensure transparency, fairness, and protection for investors and contribute to the development of the crypto industry.