FX.co ★ EU Parliament approves its first crypto regulation

Cryptocurrencies are deeply embedded in today's reality. Given that this financial instrument is fairly recent, the pace of its adoption in various spheres of life is impressive. However, the mass use of digital money requires regulation, thus forcing authorities around the world to puzzle over new laws.

The European Union was one of the first to create clear regulations on the use of crypto assets. However, the EU Parliament has only now approved the first package of rules aimed at regulating the cryptocurrency industry. Details on the issue were presented in a press release.

"Parliament approved the first EU rules to track crypto-asset transfers, prevent money laundering, as well as common rules on supervision and customer protection," the release noted.

The new Markets in Crypto Assets regulation, or MiCA, stipulates the registration of service providers wishing to operate in the European financial market. Cryptocurrency transfers will now be subject to the rules applicable to traditional bank transfers. In particular, it will require detailed information about the sender and recipient to accompany transfers of such assets. Under the new rules, clients will gain access to all necessary information about service providers, as well as the risks of using crypto assets. Moreover, the bill will make it possible to prevent the use of these technologies for money laundering and terrorist financing.