EU lawmakers are anticipated to pass the very first set of rules for the trading of cryptocurrency markets later today.
The regulations are designed to ensure that digital assets can be tracked, preventing illegal activities such as money laundering and terrorist financing.
Although many EU parliamentarians question the long-term sustainability of cryptocurrencies, the bloc is still taking steps to regulate the sector.
This is due to the abuse of crypto currencies in criminal activities and terrorist financing. Earlier this year, the HSE was hacked and the hackers demanded a ransom in the form of a cryptocurrency.
Legislation is expected to be given the go-ahead this afternoon and will come into effect from July 2022. Under the new measures, businesses facilitating the trading of the currency will have to register with an oversight body and disclose their energy consumption.
European Commissioner for Financial Services Mairead McGuinness commented that the regulations will allow the sector to develop in a safer environment.
Sinn Féin MEP Chris MacManus, who was involved in the negotiation process for the Left Group, stated that although he does not necessarily favour the growth of crypto currencies, he believes there is an obligation to regulate the market.
He went on to say that the future of virtual currencies is not certain.
Members of the European Parliament agree that the regulations will require to be frequently updated in order to keep up with the cryptocurrency sector.