The European Union has reached an agreement on regulations for crypto assets. They are expected to enter into force by the end of 2023.
Representatives from the EU countries and the European Parliament agreed to the new law, known by the name markets in crypto assets (MiCA).
Stefan Berger, a centre-right lawmaker, led negotiations for the parliament.
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According to Ernest Urtasun (Green Party member in European Parliament), MiCA will be the first regulation of crypto assets worldwide and will include strong measures to protect against market abuses and manipulation.
Urtasun stated that the EU will be the primary regulator for crypto companies. However, ESMA, the watchdog, will have powers to intervene if investors’ protection or financial stability are threatened.
According to Reuters, one of the regulations will include a ‘crypto passport,’ which gives crypto-asset issuers a license to serve clients throughout the EU from a single base.
After the collapse of TerraUSD last month and luna tokens last week, crypto-assets were under pressure.
Bitcoin and other cryptocurrencies have suffered months of decline. The largest cryptocurrency by market capital lost 60% and 70% respectively in the year and November, when it reached its peak of US$67,000, respectively.
Two of the most important crypto centers, the UK and the USA, have not yet approved similar regulations.
