EU Parliament Passes Historic Legislation to Regulate Crypto Transfers
The European Parliament has approved the first-ever European Union legislation to oversee cryptocurrency asset transfers. This marks a defining moment in global financial regulation, designed to combat money laundering and introduce standardized consumer protection across the EU.
Under the new framework, all crypto transfers will now be governed by the “travel rule,” a system already used in traditional finance. This rule mandates that transaction data, including the source and recipient, must be recorded and stored at both ends of a transfer.
Transfers exceeding €1000 involving self-hosted wallets will also fall under the new guidelines when interacting with service-provider wallets. However, direct transfers between individuals or between independent providers remain exempt.
MiCA Framework Sets Unified Standards for Crypto
Alongside the travel rule, the European Parliament approved the broader MiCA (Markets in Crypto-Assets) framework — a common legislative structure covering supervision, transparency, and market conduct.
The MiCA regulation addresses previously unregulated crypto assets and introduces clear rules to prevent manipulation, financial crime, and misuse. The framework establishes requirements for disclosure, authorization, and supervision of crypto asset issuers and trading platforms.
According to EU lawmakers, the provisions aim to enhance consumer awareness of risks and costs while strengthening financial stability through transparent operations and oversight.
ESMA to Oversee Compliance and Combat Money Laundering
The legislation grants the European Securities and Markets Authority (ESMA) new responsibilities in the fight against financial crime. ESMA will maintain a public register listing non-compliant crypto service providers operating within the EU without authorization.
In addition, major crypto firms must now disclose their energy consumption to address the environmental impact of mining and blockchain operations — part of a broader push to align crypto activity with the EU’s sustainability goals.
Lawmakers and Industry Voices Welcome Clarity
Stefan Berger, the lead MEP for MiCA, described the legislation as positioning Europe “at the forefront of the token economy.” He said the new legal clarity will foster innovation while ensuring user protection.
MEPs Ernest Urtasun and Assita Kanko echoed this view, stressing that the law closes existing gaps in the EU’s Anti-Money Laundering framework and unifies a previously fragmented European crypto market.
The legislation now moves to the EU Council for final endorsement before being published in the EU Official Journal. Implementation is expected approximately three weeks after publication.
Binance and Industry Reaction
Binance CEO Changpeng Zhao (CZ) praised the move, calling it a “pragmatic solution” that provides tailored regulation for one of the world’s largest markets.
According to CZ, the MiCA framework will protect users and promote innovation while offering clear compliance guidelines for exchanges operating in Europe. Binance is expected to adjust its operations over the next 12 to 18 months to fully align with the new rules.
Toward a Regulated European Crypto Future
The MiCA legislation represents a milestone for digital assets within the European Union. By harmonizing standards and enforcing transparency, the EU aims to strike a balance between innovation and accountability — paving the way for a more secure and regulated crypto economy across Europe.
