EU approves crypto licensing and funds transfer rules.

[Coinpedia Fintech News]

The EU has approved the MiCA regulation, bringing unprecedented oversight to the crypto industry. This move follows the downfall of major players like FTX.

Mairead McGuinness, the European Financial Services Commissioner, said the legislation could be in place by July, with stablecoin guidelines set to take effect in 2024.

The MiCA regulation has been in the works for three years and is considered an alternative to the US approach of regulating the crypto industry through enforcement proceedings.

It requires any crypto-related business operating in the EU to register in a member state before conducting business throughout the union.

The European Banking Authority and the European Securities and Markets Authority will be responsible for ensuring compliance with the regulations, including risk management and governance mechanisms to prevent collapses like FTX.