The crypto sector will have to deal with European legislation that must limit the excesses around crypto coins. For the first time, all work around cryptocurrency will be tied 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 and prevent abuse, but will not hinder innovation in this sector,” said French Finance minister Bruno Le Maire. “This regulation is a milestone, as a result of which the crypto world is no longer like the Wild West.”
According to European parliamentarian Paul Tang (PvdA), more than 8 billion euros were laundered via crypto coins in 2021.
“After years of suffering, Europe is taking matters into its own hands again. We put a stop to the excesses of the crypto sector, where criminals and shakers have free rein.”
Among other things, the new legislation requires service providers in the crypto sector to better put their business structure in order. In addition, they must publish information about their financial position and put their IT systems in order to be able to repel cyber attacks. This will reduce the number of scams. In the past year, customers have been scammed in this way for more than 7 billion euros according to Tang.
“The sector has matured and is treated as such with these laws,” says Tang. “The customer must not be the victim of cybercriminals, poorly designed crypto projects or hardware IT systems. These laws are a game changer for the European investor.”