On May 16, EU ministers approved the Markets in Crypto-Assets (MiCA) legislation, making it the world’s first cryptocurrency regulations.
The European Union has approved a set of rules—the first such regulation in the world—to regulate crypto assets like cryptocurrencies and tokens in a bid to curb money laundering activities and protect investors.
The markets in crypto-assets (MiCA) legislation was approved on May 16 by EU ministers. The new rules will increase transparency and create a comprehensive framework for businesses operating in crypto markets, including compliance with anti-money laundering rules, according to a May 16 press release. “Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism,” said Elisabeth Svantesson, Minister for Finance of Sweden.
Crypto markets have suffered in recent months due to the collapse of multiple firms. FTX, Alameda, Core Scientific, Voyager Digital, Celsius Network, BlockFi, and Three Arrows Capital are some of the major crypto companies that have filed for Chapter 11 bankruptcy and decided to liquidate their assets to pay back customers. Each of these firms is estimated to have liabilities worth billions of dollars that they owe to thousands of creditors.
MiCA was approved unanimously by members of the EU’s Economic and Financial Affairs Council (EcoFin). EcoFin represents the economic and finance ministers of all 27 EU nations.
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