EU Lawmakers Approve New Rules for Cryptocurrencies


Earlier this month The European Parliament passed a major cryptocurrency regulation called Markets in Crypto Assets (MiCA). This new bill is designed to regulate the "crypto wild west", prevent money laundering and data provision loopholes that may bypass rules.

MiCA will come into effect in 2024, meaning every Crypto Asset Service Provider (CASP) in Europe will have to report data on crypto transactions and any suspicious dealings. The new law will only track data on transactions of €1,000 or more from crypto wallets, when interacting with hosted wallets managed by a CASP.

MiCA also covers rules on supervision, consumer protection, and environmental safeguards of cryptocurrencies, as well as market manipulation and financial crime. It will also require those who issue stablecoins to maintain enough reserves. As consumers this is great news for us because it means we will be protected against fraud and deception (in theory).

MiCA makes the EU the first major place to have comprehensive crypto regulation to date. But it remains to be seen whether the UK or the US will follow this as a template for their own crypto legislation. The UK is however, also making strides in regulating cryptocurrencies. With plans to launch a cryptocurrency bill within the next year so watch this space.

Here are 5 important points of the EU MiCA Bill for investors:

  1. The EU MiCA Bill aims to regulate the industry in the European Union, by providing investors with greater transparency, stability, and protection. It provides a framework for different types of crypto assets, including utility tokens, payment tokens, and e-money tokens, which provides clear definitions of these assets.
  2. The MiCA Bill introduces a 'crypto asset reference taxonomy' to categorise different types of crypto assets based on their characteristics, making it easier for investors to understand which assets they are buying.
  3. The bill provides for investor protection in that service providers such as exchanges, brokers, and custody providers are to safeguard investors' interests. As Well as provide clear and accurate information to investors about the assets they are offering.
  4. The MiCA Bill sets out obligations for stablecoins, such as reserve requirements and disclosure of information to users, to potentially protect investors from market volatility.
  5. The EU MiCA Bill enables cross-border activities by issuers and service providers subject to certain conditions.

Overall, the EU MiCA Bill provides a clear regulatory framework for crypto assets investment, which aims to enhance investor protection, increase transparency and instil greater confidence in the rapidly evolving industry within the European Union.

What does this all mean for you? Short version;

  1. Get to Delriene’s tax workshop!
  2. Get your house in order!

Especially those of you involved with our Daisy Team Funds. Remember, DBM Academy Coaches are here to help guide you. Take advantage of this sooner rather than later.

Successfully yours

Sasie Thompson
DBM Academy Coach