The new EU law will regulate the circulation of cryptocurrency in Europe

The European Union has finally approved the world’s first set of rules to regulate the cryptocurrency market. Regulation on Crypto Asset Markets ( Markets in Cryptoassets, MiCA ), which will come into force next year, sets out a set of rules for firms dealing with digital currencies. According to the rules, any organization planning to issue, trade or store crypto assets (for example, digital wallets) must obtain a license for such activities in the EU.

Along with resolving licensing issues, the EU Council also adopted rules to prevent the use of cryptocurrencies for money laundering by expanding the rules requiring certain information accompanying funds transfers to include crypto-currency assets.

Under the new rules, any organization that buys or trades cryptocurrencies will be required to collect and provide access to certain information about the sender and recipient of cryptoassets, regardless of the amount. In other words, participants in transactions and cryptocurrency generally lose their anonymity.

The rules are aimed at combating the use of cryptocurrencies in illegal activities to circumvent EU sanctions or to finance crimes. The ultimate goal of the Regulation is to combat money laundering in the EU.