TechFlow news, according to CoinDesk, EU regulators have proposed new rules requiring background checks for shareholders owning more than 10% of a crypto company.
The new EU law, known as the Markets in Crypto-Assets Regulation (MiCA), will take effect in December 2024 and requires companies seeking a crypto license to demonstrate that their owners and executives have a good reputation. MiCA authorizes revocation of licenses if executives fail to meet these requirements.
The EBA and ESMA, EU regulatory bodies responsible for banking and securities market laws, stated that shareholders and board members of crypto asset service providers "must not have been convicted of offenses relating to money laundering, terrorist financing, or other crimes affecting their good reputation," emphasizing this condition must be "continuously maintained."
