The European Parliament overwhelmingly passes sweeping crypto asset regulations – here’s what’s next

European legislators have just passed two new regulations that will give European Union (EU) member countries a unified legal framework for regulating the digital asset market.

On Thursday, Members of the European Parliament (MEPs) voted 529 to 29, with 14 abstentions, in favor of a law to trace transfers of Bitcoin (BTC) and other crypto assets.

The legislation, designed to ensure crypto transfers can always be traced and suspicious ones blocked, covers transactions worth over €1000 between self-hosted consumer wallets and wallets managed by crypto asset service providers.

Lawmakers also voted 517 to 38, with 18 abstentions, to pass the Markets in Crypto Assets Regulation (MiCA), which provides rules for the oversight, consumer protection, and environmental protection of crypto assets. The law also includes measures against other financial crimes, including market manipulation, money laundering and terrorist financing.

Says Stefan Berger, lead MEP for the MiCA regulation,

“This regulation brings a competitive advantage for the EU. The European crypto-asset industry has a regulatory clarity that doesn’t exist in countries like the US.”

The European Parliament says the rules still need to be formally approved by the Council of the European Union and published in the EU’s Official Journal before they can come into effect.

“The texts now have to be formally approved by the Council before being published in the EU Official Journal. They come into force 20 days later.

By passing this piece of legislation, Parliament is responding to citizens’ expectations to set safeguards and standards for the use of blockchain technology.”

EU Financial Services Commissioner Mairead McGuinness says the new rules will apply from next year.

“I welcome today’s European Parliament vote to adopt comprehensive EU rules on crypto: a world first. The rules will apply from next year. We protect consumers and maintain financial stability and market integrity.”

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