The European Parliament has given its approval to the EU Cryptocurrency Regulation Bill (MiCA), a landmark piece of legislation that seeks to establish clear standards for the industry and safeguard the interests of crypto investors.
The MiCA framework received strong support from 517 members of the EU Parliament, while 38 individuals voted against it.
The bill was introduced in response to the infamous FTX crash that occurred five months prior, with the aim of preventing similar incidents from happening in the future.
In addition to the MiCA bill, European politicians have also endorsed a separate law mandating virtual asset service providers (VASPs) to identify their customers before carrying out any fund transfers, with the goal of curbing money laundering.
Known as the Travel Rule, this regulation is based on recommendations made by the International Financial Action Task Force on Money Laundering (FATF), and will apply to crypto transactions worth over €1,000 (roughly $1,100) carried out by private individuals.
Mairead McGuinness, the European Commissioner for Financial Services, hailed the passage of the MiCA legislation as a historic moment, as it represents the world’s first comprehensive set of rules for cryptocurrencies.
The commissioner stressed the importance of implementing these standards as soon as possible in order to prevent the multiple bankruptcies and scandals that have plagued the industry in recent years.
Binance CEO Changpeng Zhao welcomed the adoption of MiCA as a pragmatic decision, one that will help protect users and promote innovation in one of the world’s largest markets.
However, not all European regulators are pleased with the bill.
Laura van Geest, the chairman of the Dutch Financial Markets Authority (AFM), has described it as too soft on cryptocurrencies, which she claims are often used for fraudulent and manipulative purposes.