The European Union is creating rules to regulate cryptocurrencies and digital assets to:
What is EU Crypto Regulation?
- Prevent money laundering (AML) and terrorism financing (CFT)
- Protect investors and consumers
- Ensure financial stability
- Encourage innovation in crypto and blockchain
The main framework is called MiCA – Markets in Crypto-Assets Regulation (expected full implementation around 2024–2025). It regulates crypto service providers across the EU.
Key EU Regulators for Crypto
European Central Bank (ECB)
Oversees the stability of the eurozone financial system
Monitors crypto’s impact on monetary policy and systemic risk
European Securities and Markets Authority (ESMA)
Supervises crypto that qualifies as financial instruments or securities
Regulates trading platforms, exchanges, and wallets
Ensures investor protection
European Banking Authority (EBA)
Sets guidelines on Crypto Asset Service Providers (CASPs)
Publishes recommendations on AML/CFT in crypto
Provides risk assessments for EU countries
National Competent Authorities (NCAs)
Each EU country has its own regulator enforcing EU law locally. Examples:
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Germany: BaFin (Federal Financial Supervisory Authority)
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France: AMF (Autorité des marchés financiers)
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Netherlands: AFM (Authority for the Financial Markets)
These authorities supervise crypto businesses operating in their countries, including exchanges, wallets, and token issuers.