EU Proposes Full Regulatory Framework for Cryptocurrencies

The European Commission has formally proposed legislation that will provide a comprehensive regulatory regime for cryptocurrencies.

AccessTimeIconSep 24, 2020 at 1:07 p.m. UTC
Updated Sep 14, 2021 at 10:00 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

The European Union's executive branch has laid out plans to create a comprehensive framework for digital assets.

  • Confirming CoinDesk's report last week, the European Commission on Thursday proposed legislation that will turn cryptocurrencies into a regulated financial instrument.
  • Dubbed the "Regulation on Markets in Crypto Assets" (MiCA), the bill will provide clarity on what constitutes a "crypto asset," as well as definitions for different token subcategories.
  • It will provide rules on digital asset custody and capital requirements, while also stipulating what the relationship between the token issuer and the token holder will be, including laying out a procedure for investors to file complaints against projects.
  • Officials also floated the idea of a regulatory sandbox initiative for companies developing infrastructure for the trading and settlement of digital assets.
  • If passed, the MiCA would turn the EU into the largest and most significant regulated space for cryptocurrencies anywhere in the world.
  • The framework will be applicable in all 27 member states, giving regulated crypto companies passport rights across the entire bloc.
  • Following on from concerns expressed last week by five European finance ministers, the commission has also warned that stablecoin issuers will likely be subject to more stringent regulatory checks.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.