European Parliament's cryptocurrency decision

The European Parliament (EP) has approved new rules that will closely monitor cryptocurrency movements such as Bitcoin in European Union (EU) countries. At the EP General Assembly session held in Strasbourg, the first EU rules that will monitor crypto asset transfers for anti-money laundering and financial supervision were approved by a majority vote. According to the new rules, crypto transfers will always be monitored, as in other financial transactions, and suspicious transactions will be blocked. The obligation, which requires institutions that carry out transactions in financial transfers to identify, store and share the identity of the sender and recipient, referred to as the “Travel Rule”, will also apply to crypto asset transfers. Crypto asset service providers will be required to detect and stop criminals’ crypto flows. Companies in the crypto space will be required to comply with all anti-money laundering obligations. Crypto asset service providers in EU countries will be required to obtain licenses from the relevant regulatory authorities. A single legal framework will apply to crypto assets within the EU. New common rules will be introduced regarding the supervision of crypto assets, including cryptocurrencies, consumer protection and environmental measures. There will be safeguards against market manipulation and financial crime in this area. The rules are expected to come into force in 2024 and will be published in the Official Journal of the EU after they are officially approved by the EU Council.