The crypto sector will have to deal with European legislation that should limit the excesses surrounding crypto coins. For the first time, all activities related to cryptocurrencies are subject to rules. The EU member states and the European Parliament reached an agreement on this on Thursday evening.
“The new rules will better protect EU citizens who have invested in this currency, prevent abuses but not hinder innovation in this sector,” said French Finance Minister Bruno Le Maire. “This regulation is a milestone and will end the crypto Wild West.”
According to MEP Paul Tang (PvdA), more than 8 billion euros will be laundered via crypto coins in 2021. “After years of being walked over, Europe is taking matters into its own hands again. We are putting a stop to the excesses of the crypto sector, where criminals and touts have free rein.”
The new legislation requires, among other things, that service providers in the crypto sector put their business structure in better order. In addition, they must publish information about their financial position and put their IT systems in order to be able to fend off cyber attacks. That should prevent the amount of scams. Last year, according to Tang, customers were defrauded for more than 7 billion euros.
“The industry has matured and is treated as such with these laws,” Tang said. “The customer should not be the victims of crypto criminals, poorly designed crypto projects or piecemeal IT systems. These laws are a game changer for the European investor.”
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