by Huw Jones

LONDON (Reuters) – The European Parliament on Thursday overwhelmingly approved a set of rules aimed at tracing crypto-asset transfers, preventing money laundering and bolstering consumer protections.

MEPs approved by 529 votes for, 29 against and 14 abstentions the first piece of EU legislation aimed at tracing the issuance and exchange of “crypto” such as bitcoin, the best-known virtual currency.

The “rule of travel”, already existing in traditional finance, is extended to crypto-asset transfers by requiring that information on the source of the asset and its beneficiaries follow the transaction and be stored at the start and arrival of the transfer. to help fight money laundering.

The plenary also gave its final green light by 517 votes in favor (38 against and 18 abstentions) to new common rules on monitoring, consumer protection and environmental safeguards for crypto-assets.

“This regulation brings a competitive advantage to the EU. The European crypto-asset sector benefits from regulatory clarity that does not exist in countries like the United States,” said rapporteur Stefan Berger.

EU member countries have already given the go-ahead to rules that will be implemented from mid-2024, requiring companies that issue and trade crypto-assets to be licensed by a national regulator, giving them a “passport” to serve customers throughout the community block.

“I hope our rules can serve as a model for other countries,” Mairead McGuinness, the Financial Services Commissioner, said on Wednesday.

(Huw Jones, Laetitia Volga, edited by Tangi Salaün)

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