Full-scale regulation of cryptocurrencies in the European Union will appear by 2024

The European Union authorities will establish new regulation rules in the field of blockchain and cryptocurrencies by 2024. This is reported by Reuters with reference to the documents at the disposal of the agency.

The new legislation will expand the use of distributed ledger technology and cryptoassets in the financial sector.

Currently 78% of payments in the euro area are made in cash. The need for cashless payments became especially evident during the COVID-19 pandemic.

The European Commission intends to develop a strategy that would promote wider use of digital assets and establish new rules to close possible regulatory gaps.

Identity identification and checks related to anti-money laundering and terrorist financing will become key requirements.

The authors of the bill believe that the new rules should be adopted by 2024. Instant payment systems should be the “new normal” by the end of 2021.

Earlier, a preliminary version of the Draft Cryptocurrency Assets Act (MiCA) was leaked to the media. According to the document, the European Commission proposes to establish a legal basis for cryptocurrencies, security tokens and stablecoins by analogy with the requirements for traditional financial instruments.

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