On Thursday, the European Union Parliament passed two laws regarding the regulation of cryptocurrency: the Markets in Crypto Assets regulation (MiCA) and the Transfer of Funds regulation. The approval of MiCA marks a significant step forward for crypto legislation, as it establishes a comprehensive legal framework for the industry within the EU. The vote was 517-38 in favor of the new licensing regime, with 18 abstentions. Additionally, the parliament passed the Transfer of Funds regulation with a vote of 529-29 and 14 abstentions, requiring crypto operators to identify their customers to prevent money laundering.
The introduction of these laws will require crypto wallet providers and exchanges to obtain a license to operate throughout the EU, and stablecoin issuers must maintain adequate reserves. The laws were proposed by the European Commission in 2020 and will take effect in 2024, 12 months after publication in the EU’s official journal, expected to occur in June.