New regulatory framework for cryptoassets in the EU
The new EU cryptoassets regulation has been published in the Official Journal of the European Union on June 9, 2023. This new regulatory framework consists of two regulations:
- Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain cryptoassets and
- Regulation (EU) 2023/1114 on markets in cryptoassets (MiCA).
The new regulations are based on a provisional agreement from June 2022.
The MiCA regulation covers cryptoassets that are not regulated by existing financial services legislation. It includes provisions for issuing and exchanging cryptoassets (including asset-referenced tokens and e-money tokens) in the areas of transparency, disclosure, authorization and supervision. In addition, the transfer of funds regulation is intended to ensure that crypto transfers can be traced and suspicious transactions blocked. The “travel rule,” already used in traditional finance, will also cover transfers of cryptoassets.
Both regulations enter into force on June 29, 2023 and will directly apply in all EU member states from December 30, 2024. As an exception, the parts of the MiCA regulation covering cryptoassets that fall within the definition of an asset-referenced token or e-money token, including so-called stablecoins, will already apply from June 30, 2024. This transitional phase of 12 to 18 months provides the opportunity for crypto businesses to adapt to the new requirements.
Find out more about this regulation and its implications for you by contacting the author or your usual DLA Piper attorney.
