EU countries back regulation bill for digital assets

The Council of the European Union, comprising 27 member states, единогласно одобрил the draft regulation on the crypto-asset market (MiCA). Member states also approved new anti-money laundering measures.

The comprehensive regulation bill for the crypto industry, adopted on April 20, requires companies to obtain a licence to operate in the bloc, and requires stablecoin issuers to maintain reserve backing.

“Today we are delivering on our promise to begin regulating the cryptocurrency sector. Recent events have underscored the need for rules that will protect Europeans who have invested in digital assets and prevent the misuse of the technology for money laundering and the financing of terrorism,” said Sweden’s finance minister, Elisabeth Svantesson.

Besides MiCA, the Council of the EU agreed on a draft legislation on tax reporting for crypto firms. The document requires companies to provide authorities with information on their clients’ balances. The initiative has not yet become law — approval by the European Parliament is still required.

Vice-president for the economy of the European Union Valdis Dombrovskis said the proposal would help to “collect taxes more efficiently and keep pace with developing technologies.”

“Crypto assets and electronic money hold great potential to stimulate the economy and innovation, but they also carry risks of reduced transparency and of tax avoidance or fraud,” he added.

In May, José Manuel Campa, head of the EBA proposed giving central banks the power to limit the issuance of stablecoins if they affect the goals of state policy.