- EU Parliament approves crypto licensing regime and funds transfer regulation with overwhelming majority.
- MiCA regulation to take effect in 2024 makes the EU the first major jurisdiction to introduce a comprehensive crypto law.
MiCA Regulation Overview
The European Parliament approved the Markets in Crypto-Assets (MiCA) regulation with an overwhelming majority of 517-38 votes, making the EU the first major jurisdiction to introduce a comprehensive crypto law.
MiCA regulation requires crypto wallet providers and exchanges to seek a license to operate across the bloc, and requires issuers of stablecoins tied to the value of other assets to maintain sufficient reserves. This regulation aims to protect consumers, safeguard financial stability and market integrity.
✅ I welcome the European Parliament’s vote today to approve comprehensive EU rules on crypto: a world first.
The rules will start applying from next year. We’re protecting consumers and safeguarding financial stability and market integrity. pic.twitter.com/cdn58rb9FA
— Mairead McGuinness (@McGuinnessEU) April 20, 2023
VeChain’s Compliance with Crypto Laws
VeChain, a blockchain company, has compliance built into its core operations and network architecture, ensuring it is compliant with all laws worldwide. The company continues to work with governmental agencies in Europe and global certification experts to define the standards for the crypto industry.
As the EU’s MiCA regulation comes into effect in 2024, VeChain is well-positioned to embrace the next phase of adoption and help drive blockchain’s mass adoption, sustainability, and digital transformation.
An important step towards #blockchain adoption, and a core aspect of why #vechain continues to work with governmental agencies in Europe & global certification experts to define the standards #crypto will work to.$VET has compliance built in to its core, from operations to… https://t.co/Yl9SmdRm9q
— vechain (@vechainofficial) April 20, 2023
The Transfer of Funds regulation, which requires crypto operators to identify their customers to prevent money laundering, was also approved by the European Parliament with 529-29 votes. These regulations provide clarity and regulatory certainty for the crypto-asset industry in the EU, something that doesn’t exist in countries like the U.S. The European Securities and Markets Authority welcomed the vote and said it will announce its timetable for drafting secondary legislation under MiCA in due time. However, the agency still warns consumers that investing in crypto-assets is a risky endeavor with limited safeguards at this stage.
In conclusion, the approval of MiCA and Transfer of Funds regulation is an important step towards blockchain adoption. VeChain’s compliance with all worldwide laws and standards, combined with its commitment to governmental agencies, puts the company at the forefront of driving the crypto industry’s sustainability, digital transformation, and mass adoption.