European Union Passes Law Requiring Identification for All Crypto Transactions

Vignesh Karunanidhi
European Union States Approve Comprehensive Rules to Regulate Crypto
Source: Bitcoin.com News

The European Union’s Markets in Crypto Assets (MiCA) regulation has received final approval from the council. The landmark legislation, which was aimed at unifying cryptocurrency across the EU, was delayed until February. It was then pushed to April and has now received final approval.

The significant MiCA proposal aims to harmonize all cryptocurrency laws among the 27 EU member states. Now, according to the latest report, the European Union waved the green flag on Tuesday, which was signed off by the finance ministers. Additionally, the new law will require identification for all crypto transactions across the 27 EU member states.

European Union’s move will put a strain on other countries

The latest move will definitely put extra pressure on Britain and the United States. However, it is definitely going to be extra pressure for the US, where there is regulatory uncertainty hovering around. The MiCA law is set to be rolled out in 2024.

Elisabeth Svantesson, finance minister for Sweden, stated: “Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism.”

The European lawmakers had earlier laid down a crypto tax proposal to fund the European Union in January. The latest MiCA low will require companies that want to trade, safeguard, and issue crypto and stablecoins in the EU states to obtain a license.