European Parliament’s economic committee has backed the adoption of the comprehensive Markets in Crypto Assets (MiCA) regulation. The latest EU effort to combat money laundering has seen it support the adoption of new rules that allow for the tracking of cryptocurrency transfers.
European Union’s MiCA Crypto Law Passes Another Hurdle Before Final Adoption
The European Parliament Committee on Economic and Monetary Affairs (ECON) has approved the provisional deal on a landmark legislation tailored to regulate the European Union’s crypto space. The vote, in which 28 members were in favor and only one against, comes ahead of the Parliament’s plenary vote on the new framework.
From the MEPs @EP_EconomicsVoted to confirm the 28/1 provisional agreement on crypto asset markets #MICA @DrStefanBergerBefore the final plenary vote
30 June deal details ⬇️⬇️🗒️https://t.co/zFPKaTxki9— ECON Committee Press (@EP_Economics) October 10, 2022
Representatives from key EU institutions, member states and other stakeholders reached an agreement earlier in the year on MiCA. According to the Council of the European Union, the law was also approved last week by the Committee of Permanent Representatives.
MiCA is designed to establish uniform rules for crypto assets in the bloc of 27 members. These goals include protecting consumers and the environment as well creating safeguards against market manipulations, financial crimes and other criminal acts.
It covers digital assets which aren’t covered under the EU financial services laws. The package regulates providers of services related cryptocurrency. It covers their trading, issuance and exchange.
“One step further… The result of the trilogue negotiation on MiCA was accepted by the ECON committee. Good news,” the rapporteur on the legislation, Stefan Berger, said on Twitter following ECON’s confirmation of the deal between the EU Parliament, Council and Commission.
EU authorities are also focusing on countering the money-laundering risk associated with crypto assets. ECON and LIBE lawmakers also approved the provisional anti-money laundering rules (AML), for crypto transfers. This agreement was also made in June and is aligned to MiCA.
Under these, a so-called “travel rule” will be applied to crypto asset flows, according to which information about the source of the assets and the beneficiary accompanies each transaction. The AML regulations will also apply to transactions from “unhosted wallets,” those of private users, when they interact with wallets managed by service providers.
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