21 Apr 2023 12:11

Ukraine to become one of first countries to implement new EU cryptocurrency rules

MOSCOW. April 21 (Interfax) - The European Parliament has endorsed the first EU rules to trace crypto-asset transfers, prevent money laundering, as well as common rules on supervision and customer protection, known as Markets in Crypto Assets (MiCA), and Ukraine plans to promptly incorporate these norms into its legislation, Ukrainian media said, citing Ukraine's National Security and Stock Market Commission.

The draft law, which was agreed informally with the Council in June 2022, includes safeguards against market manipulation and financial crime, according to a statement on the European Parliament website.

MiCA will cover crypto-assets that are not regulated by existing financial services legislation, it said. Key provisions for those issuing and trading crypto-assets (including asset-reference tokens and e-money tokens) cover transparency, disclosure, authorization and supervision of transactions. Consumers would be better informed about the risks, costs and charges linked to their operations. In addition, the new legal framework will support market integrity and financial stability by regulating public offers of crypto-assets.

The agreed text includes measures against market manipulation and to prevent money laundering, terrorist financing and other criminal activities, the document said.

To counter money-laundering risks, the European Securities and Markets Authority should set up a public register for non-compliant crypto assets service providers that operate in the EU without authorization.

To reduce the high carbon footprint of cryptocurrencies, significant service providers will have to disclose their energy consumption.

The texts will now have to be formally endorsed by Council, before publication in the EU Official Journal. They will enter into force 20 days later.