The so-called “Wild West” cryptocurrency sector will be regulated in the EU

The European Union has reached an agreement on ground-breaking rules for regulating crypto assets, EU legislators said on Thursday. This comes at a time when the recent decline in the price of bitcoin is piling pressure on authorities to rein in the sector.

The so-called "Wild West" cryptocurrency sector will be regulated in the EU

On a global scale, crypto assets are generally unregulated, and national operators in the EU are needed to exhibit safeguards for preventing money laundering. This is in contrast to the situation in other parts of the world.
A consensus about the markets in crypto assets (MiCA) law was reached by delegates from the European Parliament, who stated that they are members of the EU. It is anticipated that the law will go into effect by the end of 2023.

The recent drop in the value of digital currencies demonstrates how incredibly hazardous and speculative they are and that the EU must take action in response to this reality.

The new legislation provides issuers of crypto assets and providers of related services with a passport that enables them to serve customers anywhere within the EU from a central location while adhering to capital and consumer safety regulations.

As investors try to recover from losses, the price of bitcoin plummeted this month to approximately $17,600 and was trading at $18,900 on Thursday. This is a significant drop from its level in late March, which was $48,200.
On Thursday, discussions centered on regulatory oversight and the amount of energy required to operate crypto assets.

The member states of the EU will be the primary regulators of crypto firms. Still, the European Securities and Markets Authority (ESMA) will have the authority to step in if there is a threat to investor protection or financial stability.

The so-called “Wild West” cryptocurrency sector will be regulated in the EU