European lawmakers have passed the world's first comprehensive rules governing the cryptocurrency industry.
The legislation, which would protect consumers against some risks associated with crypto investments, comes after the collapse of the crypto exchange FTX and other big industry players.
- On
Thursday, the European Parliament voted 517-to-38 in favor of the
Markets in Crypto Act, or MiCA, which will impose regulations on crypto
platforms, traders, and token issuers.
- Under the rules, platforms will have to disclose risks to consumers and follow rules surrounding the sales of new tokens.
- Companies offering crypto services in the EU will have to register in a member state to operate across the region.
- The EU's 27 member states still need to formally sign off on the legislation.
- Specific rules would take effect over time. Regulations regarding Stablecoins, for example, would come into force in July 2024.
- Binance, Coinbase, and other platforms have welcomed the rules.
- Binance CEO Changpeng Zhao (CZ) tweeted that the crypto exchange would make changes over the next 12 to 18 months to comply.
- "The
fine details will matter, but overall we think this is a pragmatic
solution to the challenges we collectively face," he wrote.
