The crypto universe is expanding with Bitcoin, Ethereum, Litecoin and Bitcoin Cash. The literature surrounding cryptocurrencies is becoming more and more widespread. As the face of a future that endorses their usefulness and without physical money, it seems inevitable that all coins and hard currencies will be buried.
The other is black: It talks about fraud, money laundering, and helping crime evade banks and financial systems by providing them with a grayish, opaque parallel financial world from the internet. Mafia money enters the world of digital money. At least in gossip.
Some websites like bitcoin.org offer transaction anonymity and fast international payments. “Bitcoin can be transferred from Africa to Canada in 10 minutes. No banks to slow the process, no exorbitant fees, and the transfer cannot be frozen.”
Without international regulation, cryptocurrencies will remain outside the current financial architecture. In the European Union, the concern is not just the impact on customers, but money laundering detected through Bitcoin. Chainalysis recently pointed out that over €26 billion of his cryptocurrency acquired through illegal funds in 2022 was laundered.
It was all the opaque funding behind crypto assets that prompted the European Parliament to approve its first crypto regulation law on April 20th. After a series of consultations and debates, the first European law was approved with 529 votes in favor. 29 votes against, 14 abstentions.
The EU has the first major regulation to track cryptocurrency transfers. It has a supervisory framework to prevent money laundering and protect customers.
The law lays the groundwork for 27 Member States to track cryptocurrency transfers. Bitcoin, electronic money tokens, etc.
The text, tentatively agreed by negotiators of the European Parliament and the European Council in June 2022, aims to ensure the transfer of cryptocurrencies. Like any financial transaction, it is always traceable and suspicious transactions can be blocked.
“So-called “Travel Rules”, Already used in traditional finance, it will cover cryptocurrency transfers in the future. According to the approved text, information about the origin of the asset and its beneficiaries must “travel” with the transaction and be stored on both sides of the transfer.
The law also covers transactions over €1,000 from so-called self-hosted wallets (private users’ crypto wallet addresses) when interacting with hosted wallets managed by crypto service providers. This rule does not apply to transfers between individuals made without a provider or between providers acting on their own behalf.
on the subject
This first law was a big step for the EU. Known as MiCA, this cryptocurrency market law regulates the relationship between issuers and service providers with the aim of protecting consumers and investors and promoting financial stability and innovation. The law will come into force from the second half of 2024.
According to Stefan Berger MEP of the European People’s Party (EPP): The EU will be at the forefront of the token economy and consumers will be protected from deception and fraud.
Ernest Wurterson, a member of the Economic and Monetary Issues Commission on Crypto Asset Transfers, said illicit flows of crypto assets are moving rapidly around the world and will likely never be detected.
However, it also makes it possible to operate under a more secure framework. Asita Kanko, member of the Commission on Civil Liberties, Justice and Internal Affairs, said:
The approved legislation empowers the 27 EU Member States to sovereignly choose the best institutions to carry out regulation and supervision of crypto assets. A big step has finally been taken!
