With the unanimous backing of European finance ministers the European Union’s historic cryptocurrency legislation has cleared the last legislative obstacle . At a meeting on Tuesday (16), the EU Economic and Financial Affairs Council (EcoFin) unanimously approved MiCA (Markets in Crypto-Assets).
The MiCA Will Be A Legislation This Summer
Meetings of EcoFin include both the finance and economic ministers of all 27 EU member states and the appropriate European commissioners . The meeting was presided over by Sweden’s Minister of Finance Elisabeth Svantesson who stated in a statement that she was pleased with the adoption .
According to her, “recent events have confirmed the urgent need to impose rules that better protect Europeans who have invested in these digital assets and prevent misuse by the cryptocurrency industry for money laundering and terrorist financing .” Last month in Strasbourg Members of the European Parliament voted in favor of MiCA establishing a unified policy for the cryptocurrency industry throughout the European Union . Once the rule is posted in the EU’s Official Journal this summer it will officially become legislation .
Businesses Have Time to Adjust Themselves
There will be a grace period during which both regulators and businesses may adjust to the new requirements . A further 18 months will be given before other stablecoin regulations take effect . Both the crypto industry and European Union authorities cheered the adoption of uniform guidelines for the industry . Hester Peirce, a member of the SEC said last week that MiCA may provide a “blueprint” for the US’s approach to industry regulation .
EU Passes Legislation Regarding Cryptocurrency Taxation And Money Laundering
EcoFin also passed a rule requiring disclosure of certain information in connection with wire transactions and the exchange of certain crypto assets in addition to the MiCA. Anti-money laundering legislation were enacted by MPs last month and now apply to cryptocurrencies under the new rules .
“Today’s decision is bad news for those who have misused cryptocurrency assets for their illegal activities, to circumvent EU sanctions or to finance terrorism and war” Svantesson said. It’s a big deal for the battle against money laundering since “this will no longer be possible in Europe without exposure .” The board also agreed on how to handle taxes .
