Europe finally turns crypto regulation bill into law

abdelaziz Fathi

The European Union (EU) has officially enacted the Markets in Crypto-Assets (MiCA) bill into law after receiving final approval from finance ministers. The landmark legislation makes the bloc the first major jurisdiction in the world with a crypto licensing regime and a comprehensive package of rules aimed at regulating the cryptocurrency industry.

The signing ceremony took place on May 31, with the participation of Sweden’s minister for rural affairs, Peter Kullgren, and European Parliament President Roberta Metsola. Later during the day, ministers further signed an agreement on implementing new measures that would compel cryptocurrency providers to reveal information about their customers’ holdings to tax authorities. This information will be shared among the member states of the European Union, aiming to prevent the hiding of funds in secret overseas wallets.

This milestone comes approximately three years after the introduction of the cryptocurrency regulatory framework by the European Commission. Throughout the legislative process, the MiCA framework underwent discussions and deliberations among EU lawmakers, with different aspects of the bill being debated and reviewed by various bodies. After undergoing rigorous scrutiny and revisions, the framework has finally attained the necessary consensus and received final approval in 2023.

Earlier in April, lawmakers in the European Parliament gave their seal of approval to an unprecedented set of regulations designed to govern the cryptocurrency industry. An momentous vote took place, resulting in 517 members of the EU Parliament voting in favor of MiCA, while only 38 voted against it. This historic legislation aims to safeguard consumers by mitigating risks associated with purchasing crypto assets, holding providers accountable for any potential loss of investors’ crypto-assets.

During the debate preceding the vote, lawmakers discussed the requirement for crypto wallet providers and exchanges to obtain a license to operate across the European Union.

Under the approved MiCA regulation, platforms operating in the European Union will have an obligation to provide consumers with clear and comprehensive information about the risks associated with their services.

Meanwhile, stablecoin issuers will be required to maintain sufficient reserves to back their stablecoins and ensure they can meet redemption requests in the event of mass withdrawals. Additionally, if a stablecoin reaches a significant size, it may be subject to further restrictions. Specifically, stablecoins that exceed a certain threshold may be limited to conducting transactions of up to 200 million euros ($220 million) per day. This limitation is likely implemented to address concerns related to financial stability and systemic risk.

Read this next

Digital Assets

TYRION Advances Decentralized Advertising with Strategic Move to Coinbase’s Base Chain

In a game-changing partnership, decentralized advertising pioneer TYRION integrates with Coinbase’s Base Chain, marking a synergistic leap towards transparent, efficient, and innovative digital advertising solutions in a future driven by blockchain.

Institutional FX

FXSpotStream reports highest ADV in six months

Trading volumes on institutional FX platforms surged in September as traders increased their bets on central bankers’ policy with evidence mounting that inflation and economic growth are not yet losing momentum.

Digital Assets

Coinbase makes major push into Singapore with MPI license

Cryptocurrency exchange Coinbase has secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).

Retail FX

Begin Your Trading Journey by Learning How to Use Trading 212

In the upcoming content, the process of getting started with Trading 212 is explored, from registration and choosing account types to the benefits of connecting with Traders Union.

Institutional FX

Cboe reports +10% increase in monthly FX volumes

Cboe’s institutional spot FX platform today announced its trading volume for the month ending September 2023, which showed resurgence in activity following two consecutive months of reduced trading volumes.


Muinmos integrates TConsult’s Investor Self-Declaration platform into client onboarding platform

“Given the increasing regulatory demands, our clients have eagerly anticipated this integration. Partnering with TConsult, one of the industry’s foremost tax experts, allows us to offer a comprehensive solution. By embedding digital tax certifications into our onboarding processes, we provide a more efficient, risk-mitigated approach to client initiation.”


TS Imagine taps Cassini Systems’ pre-and post-trade margin and collateral analytics

“Joining forces with Cassini allows us to offer a single, integrated system that provides in-depth analytics, streamlining operations for investment and risk management teams. This collaboration stands to significantly benefit our clients in the ever-evolving market landscape.”

Retail FX

XTB launches fractional shares offering in the UK

“The roll-out of Fractional Shares has made capital markets even more accessible for UK investors. Having observed the positive reception to our Fractional Shares in other European regions, we’re confident that this addition fortifies our competitive stance in the UK, positioning XTB as a go-to destination for a diverse range of investors.”


Baton Systems launches DLT-powered post-trade solution Core-Payments ahead of T+1

“With the transition to T+1 now just months away, and with regulators growing increasingly vocal around the need for greater settlement control and supervision, it is paramount that market participants ensure they are fully prepared to cope with any rise in settlement risk