EU-Wide Regulation Prompts Crypto Exchanges to Set up Shop

In anticipation of EU-wide regulation coordinating the union’s approach to digital assets, cryptocurrency exchanges have been scrambling to set up shop. 

Over the past week, both Crypto.com and Coinbase secured virtual asset provider registrations with regulators in Italy, while Gemini received registration in Ireland. Meanwhile, the world’s largest cryptocurrency exchange by volume, Binance, also managed to secure registration in France, Italy and Spain over the past month.

While the registrations do not mean that the exchanges are licensed to operate as regulated financial companies in these countries, they are an important step in anticipation of sweeping rules, known as Regulation on Markets in Crypto Assets (Mica). 

These rules were provisionally outlined by European Union member states and the European Parliament earlier this month. They would enable crypto services providers to offer their services across the EU with authorization from just one national authority.

Pick a state

Consequently, EU member states are also trying to get an edge before the legislation is enacted. According to Spanish MEP Ernest Urtasun “national regulators want exchanges to choose their member state.” 

There is ample evidence for this argument, especially among key stakeholders in France and Italy, who have reacted enthusiastically towards Binance. “Look, we want to welcome you here,” France’s President Emmanuel Macron told Binance’s CEO, Changpeng Zhao, last year. “Please apply for a license.” 

EU crypto regulation

Last month, the EU agreed on anti-money laundering (AML) rules for cryptocurrencies that would oblige firms to check customer identities regardless of transaction size. The rule serves as an expansion of the “travel rule” to cryptocurrencies, mandating crypto exchanges to collect information on both the sender and receiver of cryptocurrency transactions.

The European Council said that the move is geared towards “making it more difficult for criminals to misuse cryptocurrencies for criminal purposes” and “will ensure the traceability of crypto-asset transfers.”

What do you think about this subject? Write to us and tell us!

The post EU-Wide Regulation Prompts Crypto Exchanges to Set up Shop appeared first on BeInCrypto.

Earning Passive Income With Crypto

Related Posts

20000% in One Minute on Play to Earn Game Tothesmart

PRESS RELEASE. The crypto enthusiast has got 10,032 BUSD into their wallet by buying virtual miners in the Play To Earn game Tothesmart for only 50 BUSD….

Ethereum’s Goerli Testnet Implements The Merge, ETH Price Jumps 74% Higher During the Past 30 Days

The Merge has successfully been implemented into Ethereum’s third and final testnet, Goerli, after previously adding Merge support to the testnets Sepolia and Ropsten. The Merge was…

Arsenal Loses Appeal Over Misleading Crypto Advertising

Premier League giants Arsenal F.C. have lost an appeal and been given a second warning by the U.K.’s Advertising Standards Authority (ASA) over the “misleading” marketing of…

Medieval Empires: Ertugrul To Ease Entry Into Web3 Gaming

In light of blockchain gaming’s advancement into the mainstream gaming industry, Medieval Empires: Ertugrul’s founding team attended the Blockchain Economy Istanbul Summit, the biggest blockchain event in…

Biggest Movers: ATOM Climbs to Highest Point Since May, While SOL Rises by Over 10%

Cosmos rose to its highest point since May earlier in today’s session, as crypto markets surged on Thursday. The global market cap is trading over 6.27% higher…

Task Force to Expedite Review of South Korean Virtual Asset Bills

South Korea’s top financial regulator has assigned a task force to “expedite the review process of bills on virtual assets,” said its chairman Kim Joo-hyun. The task…