EU passes the world's first regulatory framework for crypto
The first regulatory framework in the world for cryptocurrencies has received final approval from the European Union, making the region a pioneer in confronting the collapses, scams and generally skeezy nature of the field. It also marks something of a dividing line for cryptocurrency itself, which as conceived by pioneers like Bitcoin was supposed to exist outside the usual economic structures, as a tool of empowerment for the (anonymous) little guy. It hasn't been that for years, of course, but that was a core idea.
The framework is called the Markets in Crypto-assets (MiCA) regulation(opens in new tab), and with this approval will come into force at some time in 2024 (the European Parliament already gave its own approval in April). It notably includes a requirement that any organisation established to issue, trade or store crypto assets now has to be licensed in order to operate in the EU.
MiCA also requires firms to collect and make available «certain information about the sender and beneficiary of the transfers of crypto assets», which is an attempt to tackle crypto being used for money laundering which, incidentally, means trades will no longer be anonymous. So there goes another pillar of crypto.
«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 crypto industry for the purposes of money laundering and financing of terrorism,» said Swedish finance minister Elisabeth Svantesson.
«Today's decision is bad news for those who have misused crypto-assets for their illegal activities, to circumvent EU sanctions or to finance terrorism and war. Doing so will no longer be possible in Europe without exposure: it is
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