The crypto sector will have to deal with European legislation that should limit the excesses surrounding cryptocurrencies. For the first time, all activities related to cryptocurrency are governed by the rules. EU member states and the European Parliament reached an agreement on this Thursday evening.
French Finance Minister Bruno Le Maire said: “The new rules will better protect EU citizens who have invested in this currency, and will prevent abuses but will not hinder innovation in this sector.” “This regulation is a milestone and will end the Wild West cryptocurrency.”
According to MEP Paul Tang (PvdA), more than 8 billion euros will be laundered in cryptocurrency in 2021. “After years of overtaking, Europe is taking charge again. We are putting an end to the abuses in the crypto sector, where criminals and promoters are in charge. things.”
The new legislation requires, among other things, that service providers in the crypto sector better align their business structure. In addition, they must publish information about their financial situation and the status of their IT systems so that they can fend off cyber attacks. It should prevent the amount of scams. Last year, according to Tang, customers were defrauded of more than 7 billion euros.
“The industry has matured and been treated as such with these laws,” Tang said. “The customer should not be a victim of crypto criminals, poorly designed crypto projects or fragmented IT systems. These laws are a game changer for the European investor.”