European Parliament Passes Crypto Assets Regulation Bill

The European Parliament’s committee signed off on the Markets in Crypto Assets Regulation (MiCA), which is landmark legislation that hopes to regulate the digital asset space within the European Union. The officials of the European Parliament have voted 28 to 1 in favour of the legislation, which, if passed, will require stricter rules for crypto companies.

The MiCA bill asks those, who issue cryptocurrency to publish a crypto-asset white paper containing information about their project. The bill also asks stablecoin companies to meet capital requirements, and such entities will be restricted in how many crypto tokens that they can issue if they are not dominated in euros and several other currencies used by member nations of the European Union.

MiCA bill also asks big crypto-assets service provider’s to reveal their energy consumption. Mining cryptocurrencies is an energy-intensive business and cryptocurrencies such as Bitcoin have a larger carbon footprint that whole countries. European Union can easily classify NFTs, which are unique tokens issued on a blockchain that are linked to assets like artwork, as securities under the new MiCA bill.

European Union lawmakers have been debating MiCA bill for more than two years, and the economic union of Europe is working hard to regulate the cryptocurrency world. The European Parliament also passed an anti-money laundering bill that requests crypto transfers, including data on the payee and payer.