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The EU is negotiating on new rules for introducing a uniform legal framework for crypto assets with the aim to boost investors’ confidence in digital services.
The European Union is looking to establish consumer protection rules including safeguards against financial crime and market manipulation in the crypto industry.
Crypto assets mining is to be included in EU taxonomy for sustainable activities by 2025 as an effort to reduce the overall carbon footprint of the financial system.
On Monday, 15 March, MEPs agreed on draft regulations on supervision, consumer protection, and environmental sustainability of crypto assets, including cryptocurrencies like bitcoin.
The Economic and Monetary Affairs Committee adopted, with 31 votes to 4 and 23 abstentions, its negotiating position on new rules on crypto-assets. They aim to boost users’ confidence and support the development of digital services and alternative payment instruments.
The key conditions agreed upon by MEPs for crypto asset traders (including asset-referenced tokens and e-money tokens) included transparency, disclosure, authorization, and supervision of transactions.
After the implementation of these new rules, consumers will be better informed about the risks, costs, and charges of digital services. Moreover, the legal framework supports market integrity and financial stability by regulating public offers of crypto-assets.
The agreed rules also include measures to prevent financial crimes like money laundering, terrorist financing, and market manipulation.
Stefan Berger (EPP, DE), the lead MEP, said: “By adopting the MiCA report, the European Parliament has paved the way for an innovation-friendly crypto-regulation that can set standards worldwide. The regulation being created is pioneering in terms of innovation, consumer protection, legal certainty, and the establishment of reliable supervisory structures in the field of crypto-assets. Many countries around the world will now take a close look at MiCA.”
Suggested read: EU’s New Anti-Money Laundering Watchdog to Monitor the Crypto Space