EU Lawmakers About To Vote on Sweeping Crypto Regulations

The European Union may be about to see comprehensive crypto regulations in the form of MiCA, which has been years in the making

article-image

Marc Bruxelle/Shutterstock, modified by Blockworks

share

European lawmakers passed the Markets in Crypto Assets (MiCA) act today, ushering in a new era of crypto regulation across the bloc.

Officials had debated the finer points of the bill, publicly voicing their support for a licensing regime specifically for digital asset service providers. The bill passed 517 to 38.

The transfer of funds provision has drawn particular attention. It aims to support tracking suspicious digital asset activity — money laundering and terrorist financing — across the European Union. 

Transfers exceeding EUR 1,000 ($1,097) from an unregulated or self-hosted platform are expected to be restricted.

“Adding regulatory clarity and clear rules for sure will reduce risks for the business and customers, especially in areas not covered by consumer protection rules,” Ilya Volkov, CEO and co-founder of YouHodler told Blockworks.

MiCA will install supervisory provisions for digital assets, consumer protections and even environmental safeguards.

While a vote was initially slated for February, the bill was delayed until April to allow industry-related firms additional preparation time.

The bill, first introduced in 2020, should come into effect 12 to 18 months after being added to the EU’s registry

Unintended impact of European Union crypto regulations

In October, the Union’s standing committee reached a preliminary deal (28-to-1), installing the European Securities and Markets Authority as the primary watchdog for digital assets falling outside normal financial regulatory bounds.

In addition to a licensing regime, MiCA intends to establish a system ensuring stablecoin issuers maintain sufficient reserves to support redemptions — a subtle nod to last year’s collapse of Terra’s algorithmic stablecoin, UST.

Joey Garcia, head of public affairs at bitcoin custodian Xapo Bank, told Blockworks that while he welcomes raising standards for digital asset service providers, there was concern that MiCA would govern the asset class too closely.

“What will the implications be for DeFi integrations and crossovers? Similarly, while the categorization of virtual assets in new categories is also constructive and forward-looking, are the rules proportionate to the industry?”

The regulation has been viewed by some as a means to limit the potential for crypto to flourish, though others still believe it could provide a model for competing jurisdictions, including the US.

“There is a widely held misconception within the crypto space that regulation’s purpose is to stifle progress and innovation,” Albert Isola MP, Gibraltar’s Minister for Digital and Financial Services, told Blockworks.

“Importantly maintaining market integrity is paramount and must be considered from the outset.”

Updated Apr. 20, 2023 at 8:46 am ET: Updated to reflect that MiCA was passed.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

zerebro.png

Research

Here we tackle the new crypto product ideas we expect agents to enable, reason about the value capture potential of different AI agent platform plays, and survey the current landscape of leading AI agent platform pureplays available to crypto investors today.

article-image

Despite the decades-long lead, there are spooky similarities between ETH and Intel stock

article-image

Some are calling for Solana to pump the brakes until validators are able to share the extra fees with stakers

article-image

Pantera junior partner Mason Nystrom details why projects need to raise capital

article-image

It’ll take time to “disentangle all these strands,” Peirce noted — ongoing litigation included

article-image

The victory lap the crypto industry has run since election night is bumping into some hurdles

article-image

The crypto custody firm’s goal was to “identify price points at which traders might consider the market to be overextended”