EU Rolls Out First Crypto Licensing Requirement

Governments will need to regularly transmit data to the European Securities and Markets Authority (ESMA) concerning the most significant and profitable crypto-based organisations.

EU Rolls Out First Crypto Licensing Requirement

The European Council has adopted new rules requiring any organisation that issues or trades cryptocurrencies to obtain an operating licence.

This regulation gives the crypto market its very first EU-wide regulatory supervision. National businesses will have just 3 months to create the necessary framework for crypto businesses seeking to engage in commerce.

Governments will need to regularly transmit data to the European Securities and Markets Authority (ESMA) concerning the most significant and profitable crypto-based organisations.

The roll out of these rules is expected to have a huge impact on crypto gambling operators, including crypto online casinos and sports betting sites. To avoid duplication with the recently enacted AML framework of the EU, which included rules governing cryptocurrency, MiCA primarily avoids money laundering.

However, the new regulations do stipulate that the European Banking Authority (EBA) must maintain a list of crypto businesses that do not comply. MiCA also mandates the introduction of "enhanced checks" in line with the EU AML framework by organisations conducting cryptocurrency-related activities whose parent organisation is located in an EU country.

“I am very pleased that today we are delivering on our promise to start regulating the crypto-assets sector,” said Swedish finance minister Elisabeth Svantesson.

“Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism.”