The Council of Europe approves the new crypto regulation that forces crypto exchanges to compensate investors if the exchange loses assets.

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Three years after the European Commission first proposed a bill to regulate the crypto market, the bill has now become law, after first the European Parliament and now the Council of Europe voted it through.

The rules introduced are comprehensive and apply to pure cryptocurrencies as well as so-called stablecoins and derivatives of various kinds, such as NFTs. Companies that operate crypto exchanges and develop crypto wallets are subject to, among other things, compensation claims for investors if the companies lose their assets, for example via hacking.

The new law is a so-called regulation and must therefore come into force at the same time on equal terms throughout the Union, and it will enter into force in one year. The regulation is part of a package of proposals all aimed at fostering technological development, financial stability and consumer protection.

https://www.consilium.europa.eu/en/...s-new-rules-on-markets-in-crypto-assets-mica/
 
These are awesome news, but it begs the question whether exchanges will comply with that rule in case a big problem occurs or they'll just file of bankruptcy or whatever.
 
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