From now on, all cryptocurrency companies will require a license and regulatory approval for the issuing & selling of digital tokens in the EU countries. The new rules have been passed in an attempt to regularize the crypto market, which resembles more like the wild west rather than a proper market.
All over the world, crypto and digital tokens are mostly unregulated. In fact, even the EU countries only required little controls to ensure that no money laundering was being done through crypto. But now, that's about to change as the rules for issuing/selling crypto in European Union have changed.
Representatives from the EU states and EU parliament made new changes in its MiCA law to regulate crypto assets.
According to German lawmakers, these new rules will ensure that the crypto market turns into a more regular and regulated market rather than the wild west.
According to experts, the recent fall in various digital currencies is an indication of how risky this market really is! This further raises the need to introduce new laws for the protection of consumers and the market.
Since the start of this year, cryptocurrencies have been losing their value which was further intensified by the collapse of stablecoin TerraUSD. This was followed by the financial problems in Voyager Digital and Celsius Network.
After the approval of recent laws, the EU has once again established its position as the standard setter. However, this time the standard was set for the crypto markets, which remain unregulated around the world.
According to experts, this move by the EU shows a strong commitment to protecting the consumer's interest and their money.
Before the new law can become applicable in the real world, it will need some formal approval from the EU states and the EU parliament.