The European Parliament approved sweeping powers to regulate the cryptocurrency industry, aiming to prevent money laundering and improve supervision and consumer protection.
Key Takeaways
- European Union lawmakers have passed the MiCA legislation in Parliament.
- The bill will allow the tracing of transactions over 1,000 euros.
- Initial Coin Offerings and measures to prevent money laundering are also covered.
Markets in Crypto-Assets (MiCA) rules, which go into effect in phases starting in 2024 and passed by a vote of 529-29, represent the most significant attempt by global governments to regulate the growing market for digital assets. The EU said in a statement that it hopes that the new law will be a “global standard-setter” for other jurisdictions.
First proposed in 2020, MiCa represents a step forward on a regulatory front where the U.S. lags. President Joe Biden signed an executive order last year for government agencies to study the impact on the industry.
That was before the crypto meltdown that featured high-profile collapses, including the Terra project and…