MiCA and ToFR: the EU is preparing to regulate the crypto-asset market

European crypto regulations: with key topics approved, who is affected and what are the possible impacts on the crypto industry?< /p> Expert grip
On the last day of June, the European Union reached an agreement on how to regulate the crypto-asset industry, giving the green light to crypto-asset markets (MiCAs), the main legislative proposal of the EU to oversee the industry in its 27 member countries. A day earlier, on June 29, lawmakers in member states of the European Parliament had already passed the Transfer of Funds Regulation (ToFR), which imposes compliance standards on crypto assets to combat money laundering risks. in the area.

Given this scenario, today we will further explore these two pieces of legislation which, due to their broad scope, can serve as a yardstick for other members of the Financial Action Task Force (FATF) outside the 27 EU countries. As it is always good to understand not only the results but also the events that led us to the present moment, let's go back a few years.
The relationship between FATF and newly enacted EU legislation
The Financial Action Task Force is a global intergovernmental organization. Its members include most major nation states and the EU. The FATF is not a democratically elected body; it is composed of representatives designated by the countries. These representatives work to develop recommendations (guidelines) on how countries should formulate anti-money laundering policies and other financial oversight measures. Although these so-called recommendations are not binding, if a member country refuses to implement them, there may be serious diplomatic and financial consequences.

In this sense, the The FATF issued its first guidelines on cryptoassets in a document published in 2015, the same year that countries like Brazil began debating the first cryptocurrency bills. This first document from 2015, which reflected the existing policies of the American regulator Financial Crimes Enforcement Network, was reassessed in 2019, and on October 28, 2021, a new document

Crypto Jul 16, 2022 0 117 Add to Reading List

MiCA and ToFR: the EU is preparing to regulate the crypto-asset market

European crypto regulations: with key topics approved, who is affected and what are the possible impacts on the crypto industry?< /p> MiCA and ToFR: The EU moves to regulate the crypto-asset market Expert grip

On the last day of June, the European Union reached an agreement on how to regulate the crypto-asset industry, giving the green light to crypto-asset markets (MiCAs), the main legislative proposal of the EU to oversee the industry in its 27 member countries. A day earlier, on June 29, lawmakers in member states of the European Parliament had already passed the Transfer of Funds Regulation (ToFR), which imposes compliance standards on crypto assets to combat money laundering risks. in the area.

Given this scenario, today we will further explore these two pieces of legislation which, due to their broad scope, can serve as a yardstick for other members of the Financial Action Task Force (FATF) outside the 27 EU countries. As it is always good to understand not only the results but also the events that led us to the present moment, let's go back a few years.

The relationship between FATF and newly enacted EU legislation

The Financial Action Task Force is a global intergovernmental organization. Its members include most major nation states and the EU. The FATF is not a democratically elected body; it is composed of representatives designated by the countries. These representatives work to develop recommendations (guidelines) on how countries should formulate anti-money laundering policies and other financial oversight measures. Although these so-called recommendations are not binding, if a member country refuses to implement them, there may be serious diplomatic and financial consequences.

In this sense, the The FATF issued its first guidelines on cryptoassets in a document published in 2015, the same year that countries like Brazil began debating the first cryptocurrency bills. This first document from 2015, which reflected the existing policies of the American regulator Financial Crimes Enforcement Network, was reassessed in 2019, and on October 28, 2021, a new document