EU Parliament officially approves crypto focus MiCA legislation

On Thursday, EU lawmakers voted 517-38 in favor of the Markets in Crypto Assets (MiCA) crypto licensing regime, with 18 abstentions, making the European Union the first major jurisdiction to adopt a comprehensive cryptocurrency law. Cryptopolitan reported earlier that the EU will meet today to decide on the bill.

EU parliament vote in support of crypto licensing, funds transfer rules

Additionally, the European Parliament voted 529-29 in support of the Transfer of Funds regulation, which mandates crypto operators to identify their customers to prevent money laundering, with 14 abstentions.

The vote came after Wednesday’s debate, during which lawmakers largely backed proposals requiring crypto wallet providers and exchanges to obtain a license to operate across the bloc and mandating stablecoin issuers to maintain adequate reserves. European Commission’s Mairead McGuinness hailed the vote as a “world first” for crypto regulations in a tweet, stating that the rules protect consumers and ensure financial stability and market integrity. The regulations will take effect next year.

Stefan Berger, the lawmaker who led the law’s negotiations, said in a statement from the European Parliament that these rules place the EU “at the forefront of the token economy.” He highlighted that the European crypto-asset industry now has regulatory clarity absent in countries like the US and can regain trust after the FTX collapse.

The MiCA regulation, proposed by the European Commission in 2020, must be approved by the Parliament and the EU Council to become law. The primary provisions are expected to apply just over 12 months after publication in the EU’s official journal, likely in June.