EU adopts the World’s first Regulation on Cryptocurrencies

Publicerad denFörfattareScoop Editorial

The EU-Parliament passed a law to regulate cryptocurrencies like Bitcoin more strongly. The new regulation will protect consumers from losses, and it will make money laundering and terrorist financing more difficult. In addition, providers are to be held liable in the event of massive losses. With the new law, Europe wants to end the “wild west of the blockchain world”.
On 20 April, the EU-Parliament passed the so-called “Regulation on Markets in Crypto Assets” (MiCA) with a large majority. Until now, it was possible to trade cryptocurrencies largely anonymously. Bitcoin & Co. are therefore popular with money launderers and fraudsters. This is now to come to an end.
Crypto exchanges will be subject to national supervisory authorities
Insider trading and abuse of power are to be made more difficult by the regulation. Service providers and suppliers of crypto-assets must submit to money laundering regulations. In addition, platforms and crypto exchanges will be subject to national supervisory authorities. Those platforms on which cryptocurrencies can be traded must also provide information about the sender and recipient of the transactions.
This is the first law to comprehensively regulate cryptocurrencies such as Bitcoin, Etherum, etc. Evelyn Regner, Vice-President of the EU Parliament, comments on the decision:
“With this law, we are not only creating a model for the regulation of crypto markets, but above all strengthening the protection of consumers and investors and increasing legal certainty for providers.
EU Regulation on Cryptocurrencies makes money laundering and terrorist financing more difficult
At the same time, the regulation ensures that trading with Bitcoin & Co. can be better tracked. Suspicious transactions that are related to money laundering or terrorism, for example, can thus be identified more quickly.
“This is long overdue, because under the guise of innovation, cryptocurrencies are often a convenient way to cover up criminal money flows. A whole 22 billion euros were laundered through crypto assets in 2022. This must now be put to an end,” Regner said.
The regulation is to come into force in stages from 23 June. From July 2024, crypto-assets tied to currencies – so-called stablecoins – will then have to prove larger financial reserves in order to be approved. The complete regulation will then come into force in January 2025 at the latest. The “Wild West of the blockchain world” will thus come to an end, according to European Parliament member Stefan Berger.
Bitcoin mining consumes as much energy as the whole of Austria every year
However, Regner points out that the EU’s regulation on cryptocurrencies is only a first step: “However, not all the work is done with the regulation adopted today, because crypto markets continue to develop rapidly. Therefore, the EU Commission should continue to closely monitor developments in the crypto asset markets and propose further regulation if needed.”
Especially in the area of sustainability, it is imperative to tighten up: “Bitcoin mining alone consumes as much energy annually as the whole of Austria. Therefore, in the future, we will also need minimum standards for sustainability, which have not made it into the regulation for the time being due to considerable resistance from the centre-right.” Läs mer…

EU: Companies with more than 100 employees must disclose wages to make pay gaps visible

Publicerad denFörfattareIngo Geiger

The European Council, the Commission and the Parliament have agreed on the main points of the new EU Pay Transparency Directive. The directive aims to end the pay gap between women and men. In the future, companies with more than 100 employees will have to publish average salaries for the same work or work of equal value. Gender pay gaps must be eliminated in cooperation with social partners. Otherwise, there is a threat of fines. 
“Today is a good day, not just for women, but for all workers,” says Evelyn Regner, vice president of the EU Parliament. She has fought for years for the EU directive for pay transparency. In December, the European Council, the EU Commission and the Parliament have now agreed on the most important points of the directive. An essential step, because in Europe, women still earn on average 14 percent less than men in comparable positions. 
Employees gain insight into wage levels
Above all, a lack of transparency makes it difficult to reduce the gender pay gap. It is considered one of the main obstacles. The new directive aims to change that. In the future, all employees of a company will be able to see the wage structures of their colleagues—at least for people who do the same or comparable work. It does not matter how large a company is. 
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Information about individual wages or the average wage for the same or comparable work forms the basis for fair pay regardless of gender. After all, this is the only way to make discriminatory wage differences visible and correct them through complaints or legal action. 
“With the new law, we have made good progress towards reducing the gender pay gap and ensuring that all employees in Europe receive the same pay for the same work or work of equal value” Evelyn Regner, Vice President of the EU Parliament. 
Companies must disclose any wage differentials between male and female employees
Companies with more than 100 employees must make wage structures publicly available and report them to a monitoring body. It must be made clear whether there are differences or pay gaps between the sexes. 
If the wage gap exceeds 5 percent, the company must develop and implement measures in cooperation with the social partners (e.g., employee representatives, trade unions). However, only if the difference cannot be attributed to objective factors. 
The disclosed data will make cross-industry comparisons possible. This will make the full extent of wage inequality (even) more visible. This will also increase awareness of the problem for employers and employees. 
Penalties and sanctions for violating the EU Pay Transparency Directive
The directive places greater responsibility on individual companies and EU member states. They must publish wage data, make it available to the public and the workforce, and report it to a monitoring body. In the event of violations, the companies concerned face fines. These are to be set and enforced by the member states. 
The newly gained transparency gives employees the opportunity to stand up for their rights from the outset. Companies that pay women and men unequally will have a harder time in the future. 
HR managers are no longer allowed to ask about applicants’ current salaries.
Wage inequality often begins in the job interview. Applicants are asked about their current salary, which then serves as the starting point for negotiations. This deepens gender pay gaps. With the new directive, HR managers will no longer be allowed to do this.
The EU-Parliament also agreed on a new directive to give platform workers more rights. Including minimum wage, social security and paid vacation. Läs mer…