The European Union has finally given its seal of approval to the world’s first set of regulations for the cryptocurrency market. A resolution called Markets in Cryptoassets, Mica was adopted by the EU Council, and it will come into effect next year. Under the new rules, organizations looking to produce, trade or store crypto assets, such as digital wallets, must first obtain a license from the EU.
Aside from resolving licensing issues, the Council also adopted measures aimed at preventing the use of cryptocurrencies in money laundering. The rules require any organization engaged in the purchase or trade of cryptocurrency to collect certain data from the sender and receiver of crypto assets, regardless of the amount. This means that participants will no longer enjoy anonymity in transactions involving cryptocurrencies.
The main objective of the new regulations is to combat the use of cryptocurrency in illegal activities that bypass EU sanctions or are used to finance criminal activities. Ultimately, the EU hopes that these rules will aid in the fight against money laundering within its borders.