• The EU Parliament has approved the new Markets in Crypto-Assets (MiCA) regulation, which will take effect in 2024.
• MiCA introduces a range of rules such as consumer protection, transparency and disclosure requirements, authorization and supervision powers for crypto platforms, and energy consumption disclosure.
• The Transfer of Funds regulation was also approved to reduce anonymity when transferring cryptocurrencies like Bitcoin.
EU Parliament Approves Crypto Regulatory Framework
The European Union (EU) recently voted in favour of the region’s landmark Markets in Crypto-Assets (MiCA) regulation to reduce the risks for consumers purchasing crypto assets. MiCA is set to take effect in 2024 and will impose several requirements on crypto platforms, token issuers, and traders around the transparency, disclosure, authorization and supervision of crypto transactions. It also grants powers to the European Securities and Markets Authority (ESMA) to ban or restrict platforms deemed not adequately protecting investors or threatening financial stability or market integrity. Furthermore, MiCA addresses environmental concerns by compelling firms to disclose their energy consumption.
Transfer of Funds Regulation
In the same session, lawmakers also approved a separate law known as the Transfer of Funds regulation that seeks to reduce anonymity when transferring cryptocurrencies like Bitcoin. This rule requires crypto operators to screen, record, and communicate information on the sender and recipient with an aim towards preventing money laundering activities. Additionally, any self-hosted wallet owned by individuals must be reported if the amount exceeds 1,000 euros.
Consumer Protection
The primary purpose of MiCA is to provide consumer protection as it makes crypto asset providers liable should they lose investors’ funds. Moreover, this regulation addresses environmental concerns by compelling firms to disclose their energy consumption rate. Finally it grants powers ESMA with authority over banning or restricting risky platforms from entering into operation within its jurisdiction.
Reducing Anonymity
The Transfer of Funds regulation seeks to reduce cryptocurrency operations’ anonymity by requiring operators to screen and record information on both senders and recipients involved with transactions exceeding 1 000 euros threshold value per wallet address held by individuals within its jurisdiction . By introducing these measures authorities hope that they would be able prevent money laundering activities conducted through cryptocurrency transfers more effectively than before .
Conclusion
 This article provides an overview about two significant pieces of legislation adopted by EU Parliament – Markets in Crypto-Assets (MiCA) Regulation & Transfer of Funds Regulation . Both Regulations are meant for providing better safety & security measures for both consumers & investors who are dealing with Cryptocurrencies . As well as reducing anonymous activities involving Cryptocurrencies , thus making them more transparent & reliable instruments for conducting financial operations .