The European Union has approved seeping new %Cryptocurrency laws that could impact the global industry.
Europe has become the first major jurisdiction in the world to vote in favour of a comprehensive set of laws governing cryptocurrencies.
The European Parliament passed legislation that will make cryptocurrency wallet providers and exchanges seek a license to operate across the continent.
The new law also requires that issuers of %Stablecoins tied to the value of other assets such as gold or the U.S. dollar maintain sufficient capital reserves.
And the new European legislation requires all cryptocurrency operators to identify their customers in a bid to prevent money laundering.
The “Markets in Crypto Assets” legislation was first proposed by the European Commission in 2020.
The new law is likely to come into effect 12 months after its publication in the European Union’s official journal this June.
Several other governments, including in the U.S., are debating legislation that seeks to govern the cryptocurrency sector.
Efforts at enforcement have increased following the $8 billion U.S. collapse of the FTX cryptocurrency exchange last November and the implosion of several stablecoins.