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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

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.

Industry City | 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.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Decentralized money was a “very unpopular goal” when concepts were proposed in the ’90s, said Nick Szabo

article-image

Cove aims to deliver “risk-adjusted yield” through curated DeFi vaults

article-image

The best capital markets are open to the most people — and crypto capital markets are open to everyone

article-image

Post-conference musings on Firedancer, Kraken, Solana Mobile and Trump

article-image

Executives expect others to follow SharpLink Gaming’s lead in purchasing an asset that has surged this past month

article-image

After a weekend of tariff policy shifts, investors appear confident that trade deals are underway