The European Union became the first major jurisdiction in the world to enact an exhaustive crypto law on Thursday, passing Markets in Crypto-Assets (MiCA) by a vote of 517 to 38, with 18 abstentions.
The Transfer of Funds regulation, a separate legislation that requires cryptocurrency providers to identify their customers in an effort to stop money laundering, was approved by the European Parliament 529 to 29 with 14 abstentions.
The MiCA Act was commended as the “first comprehensive crypto rules” in the world by Mairead McGuinness, the European Commissioner for Financial Stability, Financial Services, and the Capital Markets Union. Due to the numerous crashes and controversies that forced the industry to close last year, she claimed that such rules are essential.
The vote was made in response to a debate on Wednesday during which the majority of the regulators backed proposals to require crypto wallet providers and exchanges to obtain licences in order to operate across the EU as well as issuers of stablecoins pegged to the value of other assets to maintain adequate reserves.
The EU Council, which is made up of the EU’s member states, and the parliament both need to approve the Markets in Crypto Assets rule before it can become a law. The regulation was first proposed by the European Commission in 2020. Just over a year after its formal journal publication in the EU, which is most likely in June, its major provisions went into effect.
