The European Parliament has voted in favour of introducing a uniform regulatory framework for cryptoasset markets in the EU.
In particular, the following regulations were approved:
- The Transfer of Funds Regulation [TFR]: Allows tracing of cryptoasset transfers by requiring Virtual Asset Service Providers to beneficiaries and recipients, as is already the case in traditional finance.
- Markets in Crypto Assets Regulation [MiCA]: Introducing common rules on the issuance of cryptoassets, including stablecoins (labelled as e-money tokens and asset-referenced tokens), as well as on Cryptoasset Service Providers. MiCA will introduce uniform requirements in terms of disclosures to investors, governance, prudential requirements, and consumer protection, amongst others.
Level 2 measures with the details of how the regulation will be implemented must still be adopted, but the vote marks a milestone in the regulation of cryptoassets that will likely serve as a model for regulatory frameworks elsewhere.