EU to vote on compulsory legalization of crypto companies

Under the new bill, all unlicensed crypto firms will have to cease their operations in Europe

31.03.2022 - 13:35

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What’s new? On March 31, the EU lawmakers put to a vote a bill under which the unlicensed crypto companies will have to cease their operations in Europe. All financial institutions will also be prohibited from doing business with “non-compliant” firms, CoinDesk reports. To comply with the new regulations, the cryptocurrency companies must register as a business, as well as get approval from the local regulators.

CoinDesk’s material

Which companies will be affected by the new bill? CoinDesk’s source suggests that the Binance cryptocurrency exchange may face difficulties within the European Union. Bifinity, a subsidiary project, has already been warned by the UK regulator to revoke its license. The government also plans to extend the anti-money laundering law (AML) to all cryptocurrency transactions and restrict cryptocurrency transfers from the EU.

In March, the Committee on Economic and Monetary Affairs of the European Parliament (ECON) has adopted a bill on the regulation of Markets in Crypto-Assets (MiCA). The draft will next be discussed by the EU Council and the European Commission. The document did not include an amendment to ban the Proof-of-Work consensus algorithm.

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