Eu lawmakers on Thursday approved the Crypto Asset Markets Regulation (MiCA), a new cryptocurrency licensing regime, by a vote of 517 to 38 (with 18 votes absent), making the EU the first major jurisdiction in the world to introduce comprehensive crypto regulations.

The European Parliament also passed a separate law called the Funds Transfer Regulation by 529 votes to 29 (with 14 abstentions), which requires cryptocurrency operators to identify their customers in order to prevent money laundering.

The vote comes after lawmakers in a debate on Wednesday largely endorsed plans to let cryptocurrency wallet providers and exchanges seek licenses to operate across the European Union and require them to maintain adequate reserves with issuers of stablecoins pegged to the value of other assets.

Mairead McGuinness of the European Commission described the vote in a tweet as a "world first" in terms of cryptocurrency rules.

"We are protecting consumers, maintaining financial stability and market integrity," McGuinness said. "The rules will apply from next year."

In a statement released by the European Parliament, Stefan Berger, the lawmaker who led the negotiations for the law, said the rules put the EU "at the forefront of the token economy."

"The European crypto asset industry has a level of regulatory clarity that countries like the United States don't have," Berger said. Now, the industry damaged by the FTX collapse can regain trust."

The European Securities Markets Authority (ESMA) also endorsed the vote in a tweet, saying it would "announce in due course" a schedule for drafting secondary legislation under MiCA. "ESMA continues to warn consumers that, at this stage, investing in crypto assets is risky and safeguards are limited," the EU agency added.

MiCA was first proposed by the European Commission in 2020 and to come into force must be approved by Parliament and the Council of the European Union, which represents the bloc's member states. The main provisions of the regulation apply 12 months after publication in the official Journal of the European Union (probably in June).