On Thursday, the European Union parliament passed two new regulations related to cryptocurrencies. The first, known as MiCA, establishes a licensing system for crypto operators and makes the EU the first major jurisdiction to implement such a comprehensive crypto law. The vote in favor was 517-38, with 18 absentees. The second rule, called the Transfer of Funds regulation, requires crypto operators to verify their customers' identities to prevent money laundering. This measure passed with a vote of 529-29, with 14 abstentions. The parliament had previously discussed the need for crypto wallet providers, exchanges, and stablecoin issuers to obtain licenses to operate in the EU and keep sufficient reserves, with these ideas receiving widespread support.

Mairead McGuinness, of the European Commission, tweeted that the passing of the new crypto regulations by the EU parliament was a "world first" for crypto rules.

"We’re protecting consumers and safeguarding financial stability and market integrity," McGuinness said. "The rules will start applying from next year."

The European Parliament released a statement regarding the passing of the new crypto regulations, in which Stefan Berger, the lawmaker who headed the negotiations on the law, stated that the rules have positioned the EU "at the forefront of the token economy."

"The European crypto-asset industry has regulatory clarity that does not exist in countries like the U.S.," Berger said. "The sector that was damaged by the FTX collapse can regain trust."

The Markets in Crypto Assets (MiCA) regulation was initially introduced by the European Commission in 2020, and in order for it to become law, it needed to be approved by both the European Parliament and the EU's Council, which represents the member states of the bloc. The main provisions of the regulation are set to take effect slightly over 12 months after their publication in the EU's official journal, which is expected to be in June.

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The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.