Tech

EU institutions agree on rules for crypto technology

The EU institutions have agreed on special rules for the technology behind cryptocurrencies – such as blockchain. The European Parliament announced on Wednesday evening. Database technologies such as blockchain are to be exempted from strict EU rules for financial services in the short term. This should allow the traditional financial sector to try out the novel technology.

A blockchain is a distributed, public database. Such technologies are also called “Distributed Ledger Technologies” (DLTs). In the context of cryptocurrencies like Bitcoin, this database is used to manage money transactions. The term “chain” comes from the chain to which the transactions are added in chronological order.

The pilot regulation that has now been adopted is intended to gather experience in order to identify proposals for further rules for transactions based on DLTs, such as the Parliament announced. The EU institutions initially agreed that financial services via DLTs should be limited. Among other things, the negotiators stipulated that operators of such a database should not exceed a market value of six billion euros.

In the summer, the EU Commission presented a whole bunch of legislative proposals to strengthen the fight against money laundering and terrorist financing. This should allow Bitcoin & Co. to be fully traced in the EU.


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