The European Union (EU) has now passed comprehensive legislation to regulate the cryptocurrency industry.
The Markets in Crypto Assets (MiCA) regulation will create a uniform set of rules for crypto across the EU and was passed unanimously on Tuesday.
Crypto companies will need to obtain a license from national regulators and adhere to strict rules under the MiCA regulation. This framework will also establish supervision for crypto markets, granting regulators the power to investigate and prosecute cases of market manipulation and fraud.
Says Elisabeth Svantesson, Sweden’s minister for finance and the chair of the meeting, of the importance of the landmark regulation,
“Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism…
Today’s decision is bad news for those who have misused crypto-assets for their illegal activities, to circumvent EU sanctions or to finance terrorism and war. Doing so will no longer be possible in Europe without exposure – it is an important step forward in the fight against money laundering.”
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce recently commended the UK and the EU for their relatively open stance on crypto regulation compared to the US.
Peirce said to The Financial Times earlier this week,
“[The UK’s] approach is one that can serve as a model for us, MiCA (Markets in Crypto Assets Regulation) can serve as a model for us. I think we’re shooting ourselves in the foot by not having a regulatory regime in the US.”
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Featured Image: Shutterstock/Mykola Holyutyak/Natalia Siiatovskaia