EU crypto asset regulations approved by finance ministers ── progress towards legislation | coindesk JAPAN | Coindesk Japan

A groundbreaking cryptocurrency regulatory framework was signed into law by the European Union (EU) Finance Ministers on May 16.

The EU Council, representing 27 member states, unanimously approved the Markets in Crypto-Assets Act (MiCA), making the EU the first major judicial authority in the world to have a crypto-assets licensing regime. decided to become They also agreed on new anti-money laundering measures for fund transfers using crypto assets.

“Today, we are very pleased that our promise to start regulating the crypto-asset sector has come true. We are determined by recent events to strengthen protections for Europeans who have invested in these assets and to prevent money laundering and terrorist financing. We recognized the urgent need to impose rules to prevent the misuse of the cryptocurrency industry for the purpose of ) said in a statement.

Last week, ambassadorsMiCAMoreAcquisition of the law was largely expected, given that it gave the go-ahead for both the US and tax measures.

MiCA will require cryptocurrency companies such as wallet providers and exchanges to seek licenses to operate within the territory, and require stablecoin issuers to hold adequate reserves. The main content of the MiCA was politically agreed in June, but administratively it remains pending. The main provisions will enter into force about a year after being published in the EU official gazette, which is expected in June or July.

On the same day, ministers also agreed to new measures to force cryptocurrency providers to disclose details of their clients’ assets to tax authorities. This is shared within the block to avoid hoarding funds in secret wallets abroad.

“Crypto assets and electronic money have great potential to promote economic activity and innovation, but they also carry the risk of reducing transparency and enabling tax evasion and fraud. Reforming the tax system in Europe will help national governments to collect taxes more efficiently and keep up with evolving technology as Europe undergoes a digital transition,” said a senior executive at Economy that Works for People. Vice President Valdis Dombrovskis said in a statement.

A new tax regime, known as DAC8, was proposed by the European Commission in December, based on the OECD model, and the latest version of the bill was released on May 12. However, the European Parliament has yet to issue an opinion on the matter, so it will still be a while before it becomes law.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: EU’s Crypto Legal Framework Inches Towards Law With Finance Ministers’ Sign-Off