EU Passes World’s First Crypto Law To Protect Users

Key Points:

• The EU has introduced the world’s first comprehensive crypto law known as MiCA.
• This new regulation requires crypto operators to identify their customers, aiming to enhance user protection and support innovation.
• The passing of this law has been praised by industry leaders such as Changpeng Zhao and Patrick Hansen, with the law scheduled to take full effect in 2024.

EU passed MiCA, the first comprehensive crypto law with 517 in favor, 38 against and 18 abstentions. CZ and others expressed sense of approval. it requires the ID of customers and aims to protect users & support innovation.

The European Union has made history by introducing the world’s first comprehensive crypto law. Known as MiCA, the law was passed with 517 votes in favor, 38 against, and 18 abstentions.

It will introduce a new crypto licensing regime that requires crypto operators to identify their customers. This tailored regulation for crypto aims to protect users and support innovation in one of the world’s largest markets. The fine details of the law are yet to be fully understood, but it is thought to be a pragmatic solution to the challenges facing the industry.

Clear rules of the game for crypto exchanges to operate in the EU will now be established. This undoubtedly requires some adjustments to businesses, but firms have until June 2024 for stablecoin issuers and December 2024 for everything else before the law comes into full application.

The passing of MiCA has been welcomed by many in the industry, including Changpeng Zhao, CEO of Binance, who stated that his firm was ready to make adjustments to its business over the next 12-18 months to be in full compliance.

The next steps in the process are a final formal vote in the Council of the EU on May 16, followed by MiCA publication in the Official Journal of the EU 20 days after that.

The regulation of the crypto industry has often been criticized for its lack of oversight. The passing of MiCA has been praised as a step forward in addressing this issue.

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