The plenary session of the European Parliament approved the first regulation on cryptoassets this Thursday to help monitor activity, prevent money laundering and financial crime, and improve protections for customers and consumers. The new European rules, backed by 529 votes to 29 with 14 abstentions, will start in July, with a phased rollout from next year to give the financial sector time to adapt. A Catalan Member of the European Parliament, who is a co-sponsor of the text, said the move marks the end of the unregulated crypto market and the beginning of a safer, more regulated era for crypto trading. Ernest Urtasun.
The new legal framework, which still requires final approval from the Council in the coming days, comprises two regulations. The first covers the transfer of funds, and the second addresses cryptoasset markets, known as MiCA. The aim is to ensure crypto-asset transfers are monitored like any other financial transaction, and that suspicious activity is blocked while consumers are better informed about risks, costs, and associated fees.
To achieve this, as with traditional finance, information about the origin and beneficiary of the asset must travel with the transaction and be stored at both the origin and destination. Regulation will apply to transfers over 1,000 euros from non-hosted wallets when they interact with hosted wallets managed by crypto-asset service providers. It will not apply to person-to-person transfers made without a provider or those executed by providers acting on behalf of users.
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The framework also builds safeguards against market manipulation, money laundering, terrorist financing and other criminal activities. For instance, to counter money laundering risks, the European Securities and Markets Authority will operate a public registry of crypto asset service providers that complies with EU rules. The regulation will promote market integrity and financial stability by governing the public offering of crypto assets.
Experts note that stricter regulation and oversight are needed after recent events. The Commission highlighted cases where investors were misled by false promises, emphasizing that while crypto markets remain relatively small in systemic risk terms, their links to traditional finance are growing. The plenary session emphasized the connection between crypto markets and broader financial services.
Urtasun described TFR as the most ambitious set of flow-control rules worldwide, enabling full traceability of crypto transfers from the first euro and compelling crypto companies to address money-laundering and sanctions risks. The legislation is expected to close gaps in consumer protection and financial oversight in crypto markets. On MiCA, however, there remains work to do in areas such as lending, decentralized finance, and the environmental impact of mining. The sentiment was that the move is progress but not a complete solution.
Marking the moment, officials stressed that the new standards will support robust enforcement while giving investors clearer information and safer markets. The dialogue continues as EU lawmakers refine and harmonize the rules to fit global crypto developments and cross-border activity.
Sources: European Parliament communications and regulatory briefings. Attribution: European Parliament and financial oversight bodies. –