The European Union Parliament has approved the Market in Cryptoassets (MiCA), a regulatory framework aimed at providing clear standards in the cryptocurrency industry. The regulation will also require digital asset operators to identify customers in any transfer of funds and to prevent money laundering. The “travel rule” will apply to cryptocurrency transactions worth over €1,000 ($1,100) to provide information on the source and beneficiary of assets, but not to person-to-person transactions. The EU Commissioner for Financial Stability, Financial Services and the Capital Markets Union, Mairead McGuinness, has praised MiCA legislation as the world’s “first comprehensive crypto rules.” The legislation on stablecoins will come into effect from July 2024 and the rules on crypto providers from January 2025. Binance CEO Changpeng Zhao welcomed the move, saying it “gives more protection to consumers and fosters innovation of the asset class.” Brian Armstrong, CEO of Coinbase, called on US authorities to impose regulations on the cryptocurrency sector, saying the country might witness an outflow of company and talent, hinting the exchange could relocate should the situation remain unchanged.
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