World first from the EU: Parliamentary blessing for cryptocurrencies
This is the first set of rules worldwide that will govern cryptoassets…
On Thursday, April 20, the ratification of the first set of rules launched worldwide for the hitherto "anarchic" sector of cryptoassets proceeded European Parliament.
The measures have already been approved by the Member States.
In particular, following a vote, its parliament EU ψήφισε με 517 «υπέρ» και 38 «κατά» τον νόμο to regulate the cryptocurrency market or MiCA.
The legislation, which seeks to reduce risks for consumers buying crypto assets, means providers will be liable if they lose investors' digital assets.
The rules will impose a range of regulations on crypto platforms, token issuers and traders, the European Parliament said.
Platforms should inform them consumers about the risks associated with their activities, while sales of new tokens will also be subject to regulation.
Stablecoins such as Tether and USDC of Circle they should maintain ample liquidity to meet redemption requests in the event of mass withdrawals.
The stablecoins that become too large will face a trading cap of €200 million per day.
The European Securities and Markets Authority, or ESMA, will be given powers to intervene and ban crypto platforms if they are deemed not to properly protect investors or threaten market integrity, or financial stability.
MiCA (the new law) also addresses environmental concerns related to crypto, as well as the impact of digital assets on the environment.
Η Mairead McGuinness, Ευρωπαίος επίτροπος για τις χρηματοοικονομικές υπηρεσίες, επάίνεσε την έγκριση του νόμου την Πέμπτη και είπε ότι αναμένει πως οι κανόνες θα αρχίσουν να εφαρμόζονται «από το επόμενο έτος».
Andrew Whitworth, EMEA policy director for blockchain firm Ripple, said the parliamentary blessing marked "an important milestone for the crypto industry around the world".
"Consistent implementation of the new legislation across the EU will be key to providing crypto companies with operational clarity to fuel innovation across Europe and protect against unintended fragmentation of the Single Market," Whitworth told CNBC via e-mail.
"Alongside this, there is a need to ensure that the legislation is applied proportionately in terms of how different companies' crypto offerings are treated, based on the risk profiles of their operations."
One step ahead of the US
Parliament also approved a separate law (Capital Transfer Regulation) aimed at reducing anonymity when transferring cryptocurrencies such as bitcoin and stablecoins, by 529 in favor and 29 against.
According to the new regulation, financial firms are required to audit, record and publicize information about both the sender and receiver of crypto transactions to help combat money laundering.
Transfers and transfers of amounts between exchanges and so-called self-hosted wallets owned by individuals must be declared if the amount exceeds the €1.000 threshold – a controversial issue for cryptocurrency enthusiasts, who often trade digital currencies for privacy reasons.
In a tweet, Changpeng Zhao, Διευθύνων Σύμβουλος του μεγαλύτερου ανταλλακτηρίου κρυπτογράφησης Binance στον κόσμο, δήλωσε ότι η εταιρεία του είναι «έτοιμη να κάνει προσαρμογές στην επιχείρησή μας τους επόμενους 12-18 μήνες».
It is noted that Binance is facing intense scrutiny from the regulatory authorities for the way it operates.
In March, the Commodity Futures Trading Commission sued Binance's former chief compliance officer, Zhao, and Samuel Lim, alleging that the company actively solicited US users without permission.
Zhao hailed MiCA as a "realistic solution to the challenges we face collectively."
Regulators have tried to rein in the cryptocurrency market following the industry's numerous catastrophic failures.
It is recalled that the collapse of terraUSD caused chain reactions in the industry, with companies such as Three Arrows Capital, BlockFi and Voyager Digital also collapsing.
Επίσης, το FTX, παλαιότερα το τέταρτο μεγαλύτερο ανταλλακτήριο κρυπτογράφησης, υπέβαλε αίτηση πτώχευσης τον Νοέμβριο στην πιο υψηλού προφίλ αποτυχία της βιομηχανίας μέχρι today.
In any case, the move puts the EU one step ahead of the US and the UK, which have yet to establish a regulatory framework for the crypto space.
A British official on Monday said specific cryptocurrency regulation could come into effect within a year or so.
Once the EU laws come into force, crypto companies will be able to use the license they hold in one European country to “offer” their services to different member states.
Crypto companies are scrambling to obtain licenses from various European authorities and open new offices in anticipation of the law taking effect.
Τα ανταλλακτήρια κρυπτογράφησης Coinbase και Kraken έλαβαν πρόσφατα άδειες παρόχου υπηρεσιών εικονικών περιουσιακών στοιχείων στο Δουβλίνο, ενώ η εταιρεία blockchain Ripple αναζητά άδεια από την ιρλανδική κεντρική τράπεζα.