The groundbreaking law designed to govern the crypto market in the European Union has received approval from the Economic and Monetary Affairs Committee of the European Parliament (ECON). The vote, which was preceded by the Parliament’s plenary vote on the new framework, saw 28 MPs vote in favor and only one against.
Early this year, representatives of important EU institutions and member states came to an agreement on the MiCA proposal. The Committee also approved the proposed law of Permanent Representatives (COREPER), the Council of the European Union declared last week.
The 27-nation bloc will adopt consistent legislation for digital assets thanks to MiCA. Protecting consumers and the environment, as well as establishing protections against market manipulation and related financial crime, are among the declared objectives.
The package relates to digital assets that fall outside the scope of the EU’s current financial services regulations. It tries to control the actions of service providers who offer cryptocurrencies, including how they are issued, traded, and exchanged.
Another top focus for EU authorities is reducing the risks of money laundering related to crypto assets. A provisional agreement on anti-money laundering (AML) guidelines for crypto transfers, also agreed upon in late June and in line with MiCA, was also accepted by lawmakers from ECON and the Committee on Civil Liberties, Justice, and Home Affairs (LIBE).
These will implement a “travel rule” for crypto asset movements, which requires that each transaction include details on the beneficiary and the source of the assets. When private users connect with wallets run by service providers, transactions from “unhosted wallets,” or those run by third parties, will also be subject to AML requirements.
