The European Union on Tuesday, gave their approval to the world’s first comprehensive set of crypto rules. This adds pressure on countries like Britain and the United States to catch up with their regulatory frameworks.
The rules received the go-ahead during a meeting in Brussels. Also, they are set to be implemented from 2024, with the aim of safeguarding investors and preventing the misuse of cryptocurrencies.
Crypto regulation has become the need of the hour after the bankruptcy of Crypto exchange FTX.
What the new regulations hold in place for the crypto industry
Under these approved regulations, companies operating within the 27-country bloc will be required to obtain a license. This will be used in order to issue, trade, and safeguard various crypto assets, including tokenized assets and stablecoins.
The rules also include measures to combat tax evasion and enhance the traceability of crypto asset transactions. The initiative contributes to the overall goal of preventing money laundering activities.
Furthermore, service providers will be required to collect information on the senders and beneficiaries of all crypto asset transactions starting from January 2026. This is irrespective of the transaction amount, to enhance transparency.
The decision by the EU member states to adopt comprehensive crypto rules serves as a catalyst for other countries. They will follow suit and establish their own regulatory frameworks.
In addition to the licensing requirements, member states of the European Union have reached an agreement to amend taxation rules. This is also in a bid to encompass crypto-asset transactions. It includes the exchange of information on advance tax rulings for high-net-worth individuals.
These measures highlight the European Union’s commitment to establishing a robust regulatory framework that addresses the unique challenges posed by cryptocurrencies. It also emphasises the need for global standards in cross-border crypto activities, as the digital asset landscape continues to evolve rapidly.
Read More:
Worldcoin Secures $115 Million in Funding, Led By Sam Altman of OpenAI
CEO of Chainalysis Reports Ongoing Investigations Into Crypto Number Crossing Thousands