Souvenir tokens representing the cryptocurrency Bitcoin and the Ethereum network with its native token Ether are submerged in this May 17, 2022 illustration. REUTERS/Dado Ruvic/Illustration
LONDON, June 30 (Reuters – The European Union has agreed groundbreaking rules to regulate crypto assets, EU lawmakers said on Thursday, as Bitcoin’s defeat puts pressure on authorities to rein in the sector.
Crypto assets are largely unregulated globally, with national operators in the EU only required to demonstrate anti-money laundering controls.
Representatives of the European Parliament and EU states have negotiated a deal on the Crypto Assets Markets Act (MiCA), which is expected to come into force at the end of 2023.
“Today we are bringing order to the Wild West of crypto assets and setting clear rules for a harmonized market,” said centre-right MP Stefan Berger, who led the negotiations on behalf of Parliament.
“The recent fall in the value of digital currencies shows us how highly risky and speculative they are and that trading is fundamental,” Berger said.
MiCA will be the world’s first comprehensive regime for crypto assets and will include strong measures to protect against market abuse and manipulation, added Ernest Urtasun, a Green Party MP in Parliament.
The new law gives issuers of crypto assets and providers of related services a “passport” to serve customers across the EU from a single base while complying with capital and consumer protection regulations.
The United States and the United Kingdom, two major crypto hubs, have yet to approve similar rules. Continue reading
Crypto assets came under pressure following the collapse of TerraUSD and Luna tokens last month, with major US cryptocurrency lending firm Celsius Network freezing withdrawals and remittances this month. Continue reading
Bitcoin collapsed to around $17,600 this month and traded at around $18,900 on Thursday, well below its late March level of $48,200 as investors nursed losses.
Thursday’s negotiations focused on issues such as surveillance and energy consumption of cryptoassets.
“We have agreed that crypto asset providers should disclose the energy consumption and environmental impact of assets in the future,” said Berger.
EU states will be the key regulators for crypto businesses, although the bloc’s securities regulator, ESMA, will have the power to step in if investor protection or financial stability are threatened, lawmaker Urtasun said.
Reporting by Huw Jones Editors by Mark Potter and Jonathan Oatis
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