Ministers of Economy and Finance of the European Union have moved forward with the first rules governing the crypto markets. This framework, known as MiCA, aims to bring a clear legal structure to crypto assets, safeguarding investors, maintaining market integrity, and strengthening checks against money laundering and financing of terrorism across the bloc.
The regulation, which negotiators from the Parliament and Council tentatively reached in June 2022, received formal approval from ministers at the Ecofin meeting held on Tuesday. It marks a decisive step in aligning crypto activity with existing financial standards and ensuring consistent application across member states.
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“I am very happy that today we have fulfilled our promise to start regulating the crypto-asset sector,” stated the Swedish industry minister. Elisabeth Svantesson emphasized awareness of recent events that underline the urgent need for robust standards. The goal is to better protect Europeans investing in these assets and to prevent the crypto industry from being misused for money laundering and terrorist financing purposes.
Track and block suspicious processes
The text establishes the first EU rules to treat cryptocurrency transfers like any other financial transaction. Transfers can be monitored and blocked if they raise suspicion, ensuring that all flows are subject to oversight.
Reforms set out specific requirements for operators, including providers of non-hosted wallets. Such providers must verify transfers to or from customers who use these unregistered wallets, closing gaps that could enable illicit activity.
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In addition, the legislation will extend to cover unregulated crypto assets alongside existing financial services rules. It emphasizes transparency, disclosure, authorization, and ongoing monitoring of crypto-related transactions, helping consumers understand the risks, costs, and fees involved.
By applying a coherent framework to public offerings of crypto assets, the regulation aims to promote market integrity and financial stability across member states. The agreed text also contains measures to prevent market manipulation, money laundering, terrorist financing, and other criminal activities.