European Parliament Passes New Laws to Monitor Crypto-Asset Service Providers

The European Parliament has passed new laws that will now monitor crypto-asset service providers (CASPs) in an effort to improve consumer protection and financial stability. The framework, part of the Markets in Crypto-Assets (MiCA) regulation, requires entities like cryptocurrency exchanges to flag and report suspicious activities to the government.

The new law also establishes the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) to oversee the implementation of these regulations. CASPs will now have to adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, allowing crypto users to use these platforms for transactions exceeding EUR 1000.

While some may see this as a burden, EU strategy and policy director at Circle, Patrick Hansen, believes this move will benefit the cryptocurrency sector by providing clarity and regulation. The law is set to be officially adopted by the Council of the EU and enforced in three years, marking a positive step for an industry that has often operated in a gray area.