The Council of the European Union adopts new rules on markets in crypto assets (MiCA):

On the 31st of May 2023, the Council of the European Union adopted a regulation on markets in crypto assets (MiCA) (Regulation (EU) 2023/1114). This Regulation introduces a harmonised regulatory framework in the European Union for crypto-assets, crypto-assets issuers, and crypto-asset service providers.

MiCA Regulation aims to prevent the misuse of the crypto industry for the purposes of money laundering and financing of terrorism. It also protects investors and preserves financial stability. In addition, it covers issuers of utility tokens, asset referenced tokens and ‘stablecoins’, as well as service providers such as trading venues and the wallets where crypto assets are held.

The MiCA Regulation shall apply from the 30th of December 2024. This is without prejudice to certain derogations indicated in Article 149 of the said Regulation.

The MiCA Regulation was published in the EU’s Official Journal of the 9th of June 2023 and it can be accessed from here.

Regulation on information accompanying transfers of funds and certain crypto assets and amending Directive (EU) 2015/849 (recast):

The Council of the European Union adopted a new Regulation on information accompanying the transfers of funds, by extending the scope of the rules to transfers of crypto assets (Regulation (EU) 2023/1113).

Under the new rules, crypto asset service providers are obliged to collect and make accessible certain information about the sender and beneficiary of the transfers of crypto assets they operate, regardless of the amount of crypto assets being transacted. This ensures the traceability of crypto asset transfers to be able to better identify possible suspicious transactions and block them.

This legislation is set to harmonise the crypto Travel Rule requirements across the European Union, as well as ensuring financial transparency on exchanges in crypto assets. Furthermore, it will provide the EU with a solid framework that complies with international standards on the exchange of crypto assets, thereby ensuring that these will not be used for criminal purposes. It should be noted that these updated rules will be supplemented by guidelines issued by the European Banking Authority.

This new Regulation will apply as of the 30th of December 2024, when Regulation 2015/847 on “Information accompanying transfers of funds” will be repealed.

Regulation (EU) 2023/1113 has been published in the EU’s Official Journal of the 9th of June 2023 and it can be accessed from here.