06/03/2023
The EU Parliament agreed last week on the world’s first comprehensive set of rules to regulate the transfer of cryptocurrencies like Bitcoin, as it looks to crack down on money laundering and illegal transfers in the bloc.
From 2024, all crypto transfers, regardless of amount, will be covered by the so-called ‘travel rule’ — information on the source of the asset and its beneficiary will have to travel with the transaction and be stored on both sides of the transfer.
The regulation requires firms that want to issue, trade, and safeguard crypto-assets, tokenised assets, and stablecoins in the 27-country bloc to obtain a licence.
“Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of the crypto industry for the purposes of money laundering and financing of terrorism,” said Swedish finance minister Elisabeth Svantesson.
MiCA — as the new regulation is known — is designed to ensure that crypto transfers within the EU can be traced in much the same way as ordinary bank transfers. Furthermore, they are meant to protect investors by increasing transparency and putting in place a comprehensive framework for issuers and service providers including compliance with the anti-money laundering rules.
The EU Parliament agreed last week on the world’s first comprehensive set of rules to regulate the transfer of cryptocurrencies like Bitcoin, as it looks to crack down on money laundering and illegal transfers in the bloc. From 2024, all crypto transfers, regardless of amount, will be covered by t...