European Union (EU) lawmakers have been considering the development of a cryptocurrency framework for a significant period of time. In contrast to other countries’ uncertainty about how to approach cryptocurrencies, Europe appears to have a definite plan.
As per Mairead McGuinness, the commissioner for financial services, the European Parliament has voted in favor of comprehensive EU regulations on cryptocurrencies.
✅ 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
EU Lawmaker’s new rules pass with a 517-38 vote
On Thursday, the European Union lawmakers voted 517-38 in favor of a new cryptocurrency licensing regime, marking it as the first significant global jurisdiction to introduce such a law. Concurrently, the Transfer of Funds Regulation also received approval from the European Parliament with a vote of 529-29, and 14 abstentions. This regulation likely requires crypto operators to confirm their customers’ identities to prevent money laundering.
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Mairead McGuinness indicated that the new rules will come into effect next year, with the aim of protecting consumers and ensuring the stability and integrity of the financial market. Earlier, European lawmakers had suggested a cryptocurrency tax to finance the European Union’s annual budget.
According to the official announcement by ESMA: “MiCA requires ESMA to draft a substantial package of implementing measures that must be developed ahead of MiCA application.” They also stated that ESMA is preparing these measures alongside NCAs, ESAs, and ECB.
The European Union’s recent move is a milestone achievement for the cryptocurrency industry. This is also considered a necessary step towards ensuring robust protection for investors in the cryptocurrency realm.