![NiceHash logo describes Bitcoin's decentralized, digital currency & blockchain technology.](https://cdn.zensoftware.nl/640_image_6_1271d984cb/640_image_6_1271d984cb.webp)
The European Union (EU) has approved landmark cryptocurrency regulations that will hold crypto exchanges responsible for customer losses. The rules, set to take effect in 2024 across the 27 EU member states, aim to protect investors and prevent money laundering and terrorist financing. The regulations require crypto providers to obtain licenses and disclose their energy consumption to monitor the environmental impact of cryptocurrencies. Suspicious transactions can be blocked, and crypto assets can be traced, similar to money transfers. The rules also seek to enhance consumer protection, prevent market manipulation, and combat financial crime.
EU closes the stable door after the horse has bolted
The EU's move to regulate cryptocurrencies comes in response to recent events, including the collapse of FTX, one of the world's largest crypto exchanges, resulting in $8 billion in customer losses. While some in the crypto industry support regulations for clarity and growth, others view regulation as a threat to the decentralized nature of cryptocurrencies. The EU's progress in implementing crypto rules is seen as a step towards global coordination in regulating cryptocurrencies. The EU aims to lead the way in establishing a shared international approach to crypto regulation, with the US expressing interest in their efforts. A global agreement on crypto regulation would involve comprehensive regulation, information exchange, investor protection, and environmental considerations, fostering a more sustainable and secure cryptocurrency ecosystem.
As the EU takes a significant step in crypto regulation, other countries like the US and UK are playing catch-up. The US is still determining how to implement oversight, while Britain has yet to establish a timeline for regulating crypto assets. However, if a global agreement is reached based on the EU's regulatory framework, it could unlock numerous benefits, including cheaper, faster, and safer payments worldwide and redirecting funds currently used to cover credit and settlement risks in the traditional financial system.
![background](https://cdn.zensoftware.nl/cta_background_9525444543/cta_background_9525444543.webp)
Custom Solutions Tailored to Your Specifications
Contact us now for personalized assistance from our seasoned professionals!
Read more:
The AI Revolution: How Generative AI is Making SEO practices Obsolete!
Artificial Intelligence (AI) and Generative AI are leading a revolution that will obsolete traditional SEO practices lik...
What’s wrong with GA4, or how to find essential reports in Google Analytics
Google Analytics 4 (GA4) reporting has received some criticism and feedback from users since its release. Despite GA4 of...
Easy automated Container registry management to save on storage costs
When using docker in any meaningful way in production you need to manage your container images. You need to make sure th...
ZEN Backstage implementation
Backstage is an open platform for building developer portals – locations where companies can engage in technical outreac...
Revolutionising Regulatory-Compliant Voice Data Management with CyberCloud CallController
In an era where regulatory compliance is paramount for organizations governed by stringent frameworks such as MiFID, PCI...
A Developer's Guide to Agile Rollouts: adding Feature Flags in React
**Feature flags**, also known as **feature toggles** or **feature switches**, are a powerful tool in software developmen...