EU States Give Nod To the World's First Comprehensive Crypto Rules The rules are expected to be set in motion in phases from 2024
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On Tuesday, the European Union, comprising 27 member states, announced the approval for the world's first comprehensive cryptoassets rules known as Markets in Crypto Assets, or MiCA. The said rules will look over the governing issuance and operations related to cryptoassets.
"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 the crypto industry for the purposes of money laundering and financing of terrorism," said Elisabeth Svantesson, Swedish finance, the current holder of European Council presidency.
The rules are expected to be set in motion in phases from 2024. MiCA will have the 27-country bloc authorize the firms who wish to issue, trade and safeguard crypto assets, tokenized assets and stablecoins. The decision was taken keeping in mind the FTX collapse, the need to regulate the open space, and combat tax evasion and money transfers. The companies will also have to discloe informatin pertaining to risks, costs and chargers borne by consumers.
Ministers have agreed upon the fact that from January 2026, service providers will maintain a record of crypto asset senders and beneficiaries, irrespective of the amount transferred. They further agreed upon amending rules on how the bloc countries cooperate with each other for taxation, transactions and information.
The move will be putting pressure on other countries with emphasis on Britain and US.