A first step in the framework of cryptocurrencies. The European Parliament adopted by a large majority the MiCA (Markets in Crypto-assets) regulation on April 20, as well as the regulation on transfers of funds (TFR). Europe becomes the first continent to adopt concrete rules on cryptocurrencies. They will enter into force 18 months after adoption of the texts by the European Council.
The main objective of this new legislation is to combat money laundering and the financing of terrorism. For this, platforms that allow the purchase and sale of cryptocurrencies will now be obliged to register in Europe if they wish to operate in the territory. They will have to provide precise data on their identity and meet security requirements.
The European Parliament has also adopted the “travel rule”, which already existed in traditional finance. This provision will force providers to transmit certain information about their customers and transactions to the receiving financial institution. Finally, suppliers will have to disclose their energy consumption, in order to reduce the high carbon footprint associated with cryptocurrency mining. The creation of a single bitcoin corresponds to an emission of 113 tons of CO2, according to a study published in 2022 by “Scientific Reports”. This represents a hundred Paris-New York return flights.
11% of French people hold or have held cryptocurrencies
“With the MiCA regulation, the European crypto-asset industry has regulatory clarity that countries like the United States do not have”, welcomed Stefan Berger (EPP), the project’s rapporteur. But other MEPs were not so enthusiastic. Aurore Lalucq (Socialists and Democrats group, left) notably regretted the planned application deadlines. “Crypto players will be able to start applying basic rules of traditional finance,” she also said. “It’s good, it’s better than nothing, is it enough? No.”
Cryptocurrencies since 2021
© / afp.com/Janis LATVELS
Supervising the sector is becoming a priority, at a time when more and more Europeans are holding cryptocurrencies. At the start of 2023, 11% of French people have one or have already acquired one, according to the latest study by ADAN (Association for the development of digital assets, the industry lobby) and the audit firm KPMG published in April. This is better than in 2021 (8%) and than in 2020 (3%). Among the French who still do not have crypto-assets (including NFTs and stablecoins), more than a quarter (26%) do not close the door to a future acquisition. The rest of the continent is even less cautious. In the Netherlands, 14% of the population already owns crypto-assets. It’s 12% in the UK and 11% in Germany and Italy.