Crypto tranfers would have to follow bank rules under new E.U. regulations

• Cryptocurrency transfers subject to same money-laundering regulations as conventional banking transfers.
• Regulations are “truly the first comprehensive piece of crypto regulation in the world,” expert says.
• Rules would apply to companies that offer bitcoin-related services, but not to bitcoin.

At a time when prices have plummeted, wiping out riches, generating suspicion, and igniting calls for stricter inspection, Europe is getting ready to lead the globe in regulating the rogue cryptocurrency business.

By adopting new rules that subject cryptocurrency transfers to the same money-laundering regulations as conventional banking transfers, the European Union made a first step late on Wednesday.

As E.U. officials worked late Thursday to iron out the last elements of a separate agreement for a comprehensive package of crypto laws for the bloc’s 27 countries, known as Markets in Crypto Assets, or MiCA, a much greater step was anticipated.

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The crypto rules are anticipated to have considerable influence around the globe, much as the E.U.’s pioneering data privacy policy, which de facto became the global norm.

The E.U. regulations are “truly the first comprehensive piece of crypto regulation in the world,” according to Patrick Hansen, a venture capital firm’s adviser on cryptocurrency.

Since the E.U. arrived first, “I think there will be a lot of jurisdictions that will look closely into how the E.U. has dealt with it,” Hansen said.

He anticipated that authorities in other nations, particularly those with smaller populations and fewer resources, would adopt regulations comparable to those of the E.U., though “they might tweak a few specifics.”

Exchanges, brokers, and other crypto businesses are subject to stringent controls under the Markets in Crypto Assets legislation, which are designed to safeguard customers.

Stablecoins are a type of cryptocurrency that are typically tied to the dollar or a commodity like gold, making them less volatile than other cryptocurrencies. Companies that issue or trade these assets are subject to strict transparency regulations that require them to provide comprehensive information on the risks, costs, and charges that consumers must bear.

The rules would apply to companies that offer bitcoin-related services, but not to bitcoin, the most well-known cryptocurrency in the world that has dropped more than 70% of its value since its high in November.

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