Home
Cryptocurrency
Cryptocurrency News
European Parliament Backs EU's First Set of Regulations for Crypto Assets; Rules to Roll Out in 2024

European Parliament Backs EU's First Set of Regulations for Crypto Assets; Rules to Roll Out in 2024

EU states have already given the nod to the rules which will be rolled out in mid-2024.

By Reuters | Updated: 20 April 2023 18:51 IST

European Parliament Backs EU's First Set of Regulations for Crypto Assets; Rules to Roll Out in 2024

Photo Credit: Reuters

European Parliament voted by 517 in favour and 38 against

Click Here to Add Gadgets360 As A Trusted Source

Highlights

The firms trading crypto will need a license by a national regulator
It will be a "passport" to operate the 27-member country bloc
Major service providers will have to disclose their energy consumption

The European Parliament on Thursday overwhelmingly backed the European Union's first set of rules to regulate cryptoasset markets.

Parliament voted by 517 in favour and 38 against to approve the world's first comprehensive set of regulations for issuing and trading cryptoassets such as bitcoin.

"This regulation brings a competitive advantage for the EU," said Stefan Berger, the lawmaker who steered the rules through parliament.

BTC, ETH Record Notable Losses, Crypto Market Plunges by Over 4 Percent

"The European crypto-asset industry has regulatory clarity that does not exist in countries like the U.S.," Berger said.

EU states have already given the nod to the rules which will be rolled out from mid 2024, requiring firms that issue and trade cryptoassets to be licensed by a national regulator, giving them a "passport" to serve customers across the 27-member country bloc.

Major service providers will have to disclose their energy consumption.

India, UK Discuss Crypto Assets; Focus on Robust Approach to Handling Risks

"I hope that our rules could become a model for other countries," the EU's financial services chief, Mairead McGuinness, said in a debate on the rules on Wednesday.

Parliament also backed new rules for tracing transfers of cryptoassets like bitcoins and electronic money tokens.

It applies the international "travel rule" already used in traditional financial transactions, meaning information on the source and recipient of the cryotoasset will have to accompany and be stored on both sides of the transfer to help combat money laundering.

Digital Euro to Offer More Choice, Not a 'Big Brother' Project: EU Official

The tracing rule also covers transactions above 1,000 euros from "self-hosted" wallet or crypto address of a private user.

Smartphone companies have launched many compelling devices over the first quarter of 2023. What are some of the best phones launched in 2023 you can buy today? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.