EU Council approves new crypto regulations

The EU Council, comprising of the finance ministers of the member countries, adopted the Markets in Crypto Assets (MiCA) legislation

The Council of the European Union has given its final approval to new regulations for crypto assets and markets in the European Union. The decision concludes a prolonged and complicated legislative process for what is regarded as the world’s first extensive legal framework for digital assets such as bitcoin.

At a meeting on Tuesday, the European Union Council, comprising of the finance ministers of the member countries, adopted the Markets in Crypto Assets (MiCA) legislation. The rules bring crypto assets, their issuers and crypto service providers under an EU-wide regulatory framework.

The formal adoption is the conclusive move in the legislative process, the Council observed. This comes after an interim agreement was reached in June last year, after trilogue discussions with the European Parliament and the EC, and the European Union lawmakers’ vote in April 2023.

I am very pleased that today we are delivering on our promise to begin regulating the crypto-assets sector, said Elisabeth Svantesson, Sweden’s finance minister.

She said in a press release that recent occurrences have established the pressing requirement for implementing rules which will better safeguard Europeans who have invested in these assets, and stop the misuse of crypto industry.

The legislation is aimed at regulating the supervision, consumer protection and environmental safeguards of digital assets, including cryptocurrencies such as bitcoin. The new regulation also cover utility tokens, asset referenced tokens and stablecoins.

The law regulates trading platforms and digital wallets used to hold crypto assets.

This regulatory framework intends to safeguard investors, maintain financial stability, while permitting innovation and encouraging the appeal of the crypto-asset sector, the European Union Council stressed. The council further said that it also introduces a coordinated regulatory framework in the EU which, given the global nature of crypto markets, is an enhancement compared to the present situation with national legislation in some member countries only.