On Thursday, EU lawmakers voted 517-38 in favor of the Markets in Crypto Assets (MiCA) crypto licensing regime, with 18 abstentions, establishing the European Union as the first major jurisdiction to implement a comprehensive crypto law. Coinfea reported earlier today that the EU would meet concerning the MiCA legislation on cryptocurrencies
EU parliament endorses Transfer of Funds regulation
The European Parliament endorsed the Transfer of Funds regulation, which compels crypto operators to identify their customers to curb money laundering, with a vote of 529-29 and 14 abstentions.
Following a Wednesday debate, lawmakers expressed overwhelming support for requiring crypto wallet providers and exchanges to obtain licenses to operate across the EU and mandating that stablecoin issuers maintain adequate reserves.
In a tweet, the European Commission’s Mairead McGuinness hailed the vote as a “world first” for crypto regulations, emphasizing the rules’ role in protecting consumers and upholding financial stability and market integrity. The regulations will come into effect next year.
In a statement from the European Parliament, Stefan Berger, the lawmaker responsible for negotiating the law, highlighted that these rules position the EU “at the forefront of the token economy.”
He noted that the European crypto-asset industry now benefits from regulatory clarity lacking in countries like the US, allowing the sector to rebuild trust after the FTX collapse.
Introduced by the European Commission in 2020, the MiCA regulation must be approved by both the Parliament and the EU Council to become law. Its primary provisions are expected to apply just over 12 months after publication in the EU’s official journal, likely in June.