The European Union has resolved on significant criteria for handling crypto assets, EU officials announced Thursday, as the collapse of bitcoin increases the pressure on experts to get control of the space.
Most crypto assets are not regulated anywhere in the world. In the EU, public officials only need to show that there are safeguards to stop illegal tax avoidance.
Delegates from the European Parliament and EU member states reached an agreement on the business sectors in the crypto resources (MiCA) regulation, which is expected to go into effect by the end of 2023.
“Today, we made a request in the Wild West of crypto resources and set clear rules for a mixed market,” said Stefan Berger, a center-right lawmaker who led discussions on behalf of the parliament.
Berger said, “The recent drop in value of digital money standards shows how risky and uncertain they are, and that action is needed.”
Ernest Urtasun, a Green Party member of the parliament, noted that MiCA will be the most extensive system for crypto-resources on earth and will have a significant containment capability to prepare for market abuse and control.
The new regulation makes it possible for providers of crypto assets and related services to serve customers all over the EU from a single location while still following rules about capital and consumer security.
