It seems so long ago, right? Less than a year ago, Bitcoin, Ethereum, and thousands of other digital currencies were the hot topic. Then in November, FTX collapsed, filed for bankruptcy and the investors lost all their money. CEO Sam Bankman-Fried will be tried on 13 counts of fraud. Finally, last month the European Union’s 27-country legislative body made some decisions and released detailed cryptocurrency rules.
Yes, there will be government oversight and transparency required from cryptocurrency businesses. The rules the EU Council will be adhering to will be known as MiCA (Markets in Crypto Assets). Companies will be held accountable for clients’ assets and liable for losses. Also, major crypto companies will be required to disclose how much energy they use so they stay compliant with environmental guidelines for zero carbon emissions goals.
With these rules, the EU has taken a leadership role in the cryptocurrency industry while the US is still formulating how to ensure the responsible development of digital assets.