Cryptocurrencies will be regulated in Europe starting in 2024

Is this the ultimate good news for cryptocurrencies or is it a complete defeat? Will cryptos become just other currencies on the market, when all along, all they wanted was to break the current banking system? These are questions that must be on the mind of investors and those who helped to build the crypto universe. But one way or another, regulations will arrive, starting next year. Here is more on the subject.

The EU tries to set the Standards

Trying to rule an unruled world is similar to conquering new countries. You pass laws and obligate those who live in this universe that you captured to obey by them. In our regulated world, we tend to expect that people will respect the new legislation. But since cryptocurrencies were created to disrupt the system, how will their founders react to the news that the MiCA rules (Markets in Crypto-Assets) are now a reality and will start to be put in place as soon as 2024?

This unruly world has been getting more and more interest every passing year. It is also being used a lot more for transaction purposes. You can pay your services at AT&T or buy a coffee at Starbucks with some of them. You can even spend them in the best crypto casino online, if you want. This should not change any time soon, but what will, is how the money will be traced in these transactions, provided it is higher than 1,000 euros. The EU lawmakers are hoping that the legal basis they are creating will be followed by the rest of the world, or at least by their Western allies. If they did, the cryptocurrency market would suddenly be quite diverse than it currently is.

A Sector that caused Issues to Authorities Worldwide

If rules are coming, it is in large part due to the fact that cryptocurrencies have been so unstable that they have caused some financial disasters. Some of the elements that illustrate this, is the collapse of the FTX exchange and the Terra project. A few weeks ago, the chairman of the Securities and Exchange Commission qualified the crypto sector as illustrating the fact that there are, indeed, no rules. There is no doubt that illicit financing activities, which were done through cryptocurrencies, did not help their cause. But fraud is nothing new, whether through crypto or regular currencies.

What will the New Rules change?

The objectives of the lawmakers were made clear. First, they want to supervise the issuance of stablecoins. Being an asset-reference, it views it as something that they can regulate more easily. Secondly, they want to use laws as a way to inform consumers on the risks involved in trading cryptocurrencies. Finally, they want to reduce crimes committed through cryptocurrencies, which include money laundering and terrorism financing. At this point cryptocurrency service companies will have to register in one of the EU countries and will be regulated through the European Banking Authority, as well as the European Securities and Markets Authority, to name only two. In other words, big changes are coming to the cryptocurrency sector, soon.