Cryptocurrency regulation has been given the green light. The EP approved the first set of measures – News

Prior to this move, European financial services legislation essentially did not cover transfers of virtual assets such as bitcoins. The new MiCA regulation forces the registration and detailed provision of information about the identity of companies offering cryptocurrency services in the EU.

These companies must obtain a license from the EU regulatory authorities in order to operate in the local market. The rules have already been approved by the EU states. However, MEPs for the Czech Pirate Party expressed criticism of the new measures and would like to maintain a certain degree of anonymity.

However, despite these concerns, most MEPs agreed that we need the right tools to regulate this fast-growing and dynamic industry. The approval of these rules is a step to ensure greater security for investors and to protect market integrity in the EU.

The new rules will be effective from the middle of next year and it remains to be seen how their adoption will affect the cryptocurrency markets and how the various companies operating in the industry will be able to deal with them.

“Thanks to MiCA regulation, the European crypto-asset industry has gained regulatory transparency that countries like the United States do not have,” said MEP Stefan Berger from the European People’s Party (EPP) group, who submitted the law, according to ČTK. He added that this way the EU will gain a competitive advantage.

“I hope that our rules could become a model for other countries,” Mairead McGuinness, the European commissioner for financial services, said in a debate on the package of measures on Wednesday.

XTB analyst Štěpán Hájek welcomes clear rules for cryptocurrencies. “The decision for one of the largest markets in the EU can support the further progress of regulation in the United States, where we have not seen significant regulation yet,” Hájek said.