The European Parliament passed a preliminary framework for the crypto space aimed at increasing standards and requirements for digital asset companies.
- The European Parliament’s Committee on Economic and Monetary Affairs announced on Monday that lawmakers overwhelmingly approved the Markets in Crypto Assets Regulation (MiCA) and the Transfer of Funds Regulation.
- A major part of the Transfer of Funds Regulation is the requirement that digital assets transferred through third parties must always be traceable, along with the ability to block suspicious transfers.
- Traditional financial transactions are subject to similar laws, with information on the source of the asset and its beneficiary stored on both sides of any given transfer. Personal, non-custodial wallets are exempt from sharing this information with authorities if requested during an investigation.
- Accordingly, MiCA requires crypto asset service providers to publish an official “crypto-asset white paper” describing their offerings.
- The bill would also require cryptocurrency mining companies to publicly disclose their energy consumption data in a prominent location on their website.