Europe pioneering crypto-currencies

“The new European rules for crypto-currencies are a quantum leap forward for all - for customers, investors, service providers and for innovation in Europe," said Stefan Berger MEP, who negotiated the new European regulatory framework for crypto-assets (MiCA), which were voted on by the European Parliament on 25 April.

“We are paving the way for a harmonized market that will provide legal certainty for crypto-asset issuers, guarantee equal rights for service providers and ensure high standards for consumers and investors. With millions of Europeans already using Bitcoin and other digital assets, it was high time to set clear rules to ensure against abuses like fraud, money laundering and tax evasion”, Berger emphasised.

So far, there have been no EU-wide rules for crypto-assets, only divergent national laws. “With this Regulation, we are providing the trust that young technologies need in order to develop further. We are bringing stability to a young, unpredictable industry,” according to Berger.

In concrete terms, crypto-asset service providers (CASPs) such as trading platforms and custodians will be obliged to register and provide accurate data on their identity if they want to operate in the EU. Before new currencies are authorised, it will be ensured that their business models do not endanger financial stability.

The EPP Group made sure that consumers will be better informed about risks, costs and charges of crypto coins. Furthermore, issuers of coins must disclose the energy consumption of their crypto-assets.

“With the MiCA Regulation, the European crypto-asset industry has a regulatory clarity which countries such as the US do not have. This Regulation makes Europe a pioneer and a global standard setter in the Blockchain world,” concluded Berger.

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