European Union gives final approval for sweeping cryptocurrency legislation

The European Union's broad set of cryptocurrency rules received final approval from member states on Tuesday, making the 27-nation bloc a leader in regulating the technology that was created to be a decentralized market. The European Council adopted the rules known as Markets in Crypto Assets (MICA) in the last step of the EU's legislative process, the Associated Press reported. The European Parliament lawmakers gave the green-light for the rules in April. With the final approval, the regulations will start taking effect in stages starting in July 2024. The sweeping set of rules is meant to fight money laundering and improve transparency in the relatively young crypto sector. MICA covers stablecoins and other digital tokens, trading platforms, bitcoin-related services but not bitcoin itself, and digital wallets. Under the regulation, crypto companies that want to operate in the EU will need to obtain approval. Regulators will compile a list of "noncompliant" companies, as well. Companies that issue or trade crypto assets will be required to disclose information on risks, costs, and charges, the AP said. Bitcoin ( BTC-USD ) slipped 1.6% to $27K in Tuesday afternoon trading and ethereum ( ETH-USD ) -0.5% to $1.83K. Crypto exchange Coinbase ( COIN ) dropped 4.8% and Galaxy Digital Holdings ( OTCPK:BRPHF ), a digital asset management firm, fell 1.2% . In April, U.S. Securities and Exchange Commission Chair Gary Gensler told Congress that most crypto assets are securities and the market is currently "rife with noncompliance." More on Crypto Clampdown: SEC asks court to reject Coinbase petition on crypto rulemaking Binance to exit Canada due to stiffer rules Ex-Coinbase manager ordered to spend two years in prison for insider trading Coinbase CEO Brian Armstrong says crypto exchange will always have U.S. presence