The European Parliament has taken a major step forward in its efforts to create a unified regulatory framework for cryptocurrencies and digital assets. On Tuesday, the Parliament voted to approve two new pieces of legislation that will bring greater clarity and certainty to the crypto industry.
European Parliament Approves Two New Cryptocurrency Regulations
The first piece of legislation, known as the Crypto-Asset Regulation (CAR), is designed to provide a comprehensive licensing framework for cryptocurrency firms operating within the EU. The CAR will require companies offering services related to crypto-assets, such as trading or custody services, to obtain an appropriate license from their national regulator before they can operate in Europe. This will ensure that all firms are subject to consistent standards across the continent and provide investors with greater protection against fraud or mismanagement.
The second piece of legislation is known as the Funds Transfer Regulation (FTR). This law seeks to harmonize existing rules on cross-border payments within Europe by introducing common standards for electronic money transfers between member states. The FTR also includes provisions aimed at improving consumer protection when transferring funds between countries, such as increased transparency around fees and exchange rates.
Increased Consumer Protection Around Crypto Transactions
Today’s vote marks an important milestone in Europe’s journey toward creating a unified regulatory environment for cryptocurrencies and digital assets. By introducing these two pieces of legislation, lawmakers have taken an important step towards providing clarity and certainty for businesses operating within this space while also protecting consumers from potential risks associated with crypto transactions.
This move by European legislators is being widely welcomed by those in the industry who have long been calling for more robust regulation of cryptocurrencies and digital assets at both national and international levels. It signals that governments are taking seriously their responsibility to protect consumers while also creating an environment conducive to innovation in this rapidly evolving sector of finance technology – something which could ultimately benefit everyone involved in this space going forward.