EU to roll out full-scale cryptocurrency regulation by 2024

EU authorities will set out new rules regulating blockchain and cryptocurrencies by 2024. Reuters reports, citing documents available to the agency.

The new legislation would broaden the use of distributed ledger technology and crypto assets in the financial sector.

At present, 78% of payments in the euro area are made in cash. The demand for cashless payments became especially evident during the COVID-19 pandemic.

The European Commission intends to develop a strategy to foster broader use of digital assets and to establish new rules to close potential gaps in regulation.

Identity verification and checks related to anti-money laundering and counter-terrorism financing will become key requirements.

The bill’s authors say that the new rules should be adopted by 2024. Instant payment systems should become the “new normal” by the end of 2021.

Earlier, the media had a preliminary version of the Markets in Crypto-Assets Regulation (MiCA). According to the document, the European Commission proposes to establish a legal basis for cryptocurrencies, security tokens, and stablecoins, in line with the requirements for traditional financial instruments.

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