EU passes the world's first regulatory framework for crypto

EU Bitcoin and Ethereum regulations
(Image credit: ParallelVision - Pixabay)

The first regulatory framework in the world for cryptocurrencies has received final approval from the European Union, making the region a pioneer in confronting the collapses, scams and generally skeezy nature of the field. It also marks something of a dividing line for cryptocurrency itself, which as conceived by pioneers like Bitcoin was supposed to exist outside the usual economic structures, as a tool of empowerment for the (anonymous) little guy. It hasn't been that for years, of course, but that was a core idea.

The framework is called the Markets in Crypto-assets (MiCA) regulation, and with this approval will come into force at some time in 2024 (the European Parliament already gave its own approval in April).  It notably includes a requirement that any organisation established to issue, trade or store crypto assets now has to be licensed in order to operate in the EU.

MiCA also requires firms to collect and make available "certain information about the sender and beneficiary of the transfers of crypto assets", which is an attempt to tackle crypto being used for money laundering which, incidentally, means trades will no longer be anonymous. So there goes another pillar of crypto.

"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," said Swedish finance minister Elisabeth Svantesson.

"Today's decision is bad news for those who have misused crypto-assets for their illegal activities, to circumvent EU sanctions or to finance terrorism and war. Doing so will no longer be possible in Europe without exposure: it is an important step forward in the fight against money laundering."

The final version of MiCA has removed some restrictions that were in earlier drafts, notably pulling back from an outright ban on proof-of-work cryptocurrencies (the ones that are using more electricity than every PC in the US). This was likely dropped because it would have also banned trading in these currencies, though crypto regulation that banned Bitcoin and Ethereum straight out of the gate would have been fun to watch: It's also a reminder just how precarious these assets are, even the established ones, because it easily could have happened.

Lawmakers in the UK continue to work on similar crypto regulations, while the US is studying the EU framework and looking to implement its own version. At the moment, the US authorities have been using existing securities rules to bring legal action in the sector, and last week a commissioner at the U.S. derivatives regulator CFTC admitted "we are wandering in the desert a bit" when it comes to working out new rules. Close alignment is likely because of the global nature of crypto trading and, for their part, crypto firms say this is what they want to see in regulation: a consistent approach across territories (good luck with China).

These plans are being moved forward with urgency after the annus mirabilis of 2022 in crypto, which saw the multi-billion collapse of FTX following on from the contagion that began with the collapse of the so-called stablecoin TerraUSD and the linked cryptocurrency Luna. That really is just the tip of the iceberg: Write a book on the crypto disasters of 2022, and you'd probably need a second volume. And the truth is, no matter how many rules and regulations are layered atop it, crypto is by its nature a speculators' market, and it's hard to see how that will change. Particularly in a world where all of our 'real' money is basically digital now anyway.

Rich Stanton
Senior Editor

Rich is a games journalist with 15 years' experience, beginning his career on Edge magazine before working for a wide range of outlets, including Ars Technica, Eurogamer, GamesRadar+, Gamespot, the Guardian, IGN, the New Statesman, Polygon, and Vice. He was the editor of Kotaku UK, the UK arm of Kotaku, for three years before joining PC Gamer. He is the author of a Brief History of Video Games, a full history of the medium, which the Midwest Book Review described as "[a] must-read for serious minded game historians and curious video game connoisseurs alike."

Read more
Hacker
$1.5 billion crypto heist could be the biggest yet, more than doubling the previous record, but don't worry: The affected firm says it can take the hit
A rendered concept image of an imaginary real Bitcoin against a stylized digital/electronic background
Bitcoin hits a new all-time high, $Trump is stymied by $Melania, and I'm over here having a full-blown existential crisis
 In this photo illustration a novelty Bitcoin token is photographed on a US Dollar bank note, on January 4, 2025 in Bath, England. The Cryptocurrency market has recently received a significant boost by the election of Donald Trump with hopes of the start of a policy framework that could see Bitcoin as a strategic asset
Man charged with $65,000,000 worth of cryptocurrency heists was reportedly discovered through chatting on Discord with a company they allegedly stole from
Fugitive crypto baron Do Kwon is arrested.
'Lunatic' crypto fugitive Do Kwon finally extradited from Montenegro to the US to face charges over $40 billion crash
EVE Frontier promo image - Omo
EVE Online studio CCP Games hires former Iceland Central Bank economist for its crypto game, because nothing says 'fun' like 'removing currency controls and fostering emergent value systems'
The iconic Atari logo.
After turning over a new, crypto-free leaf, Atari would like to stress that the meme currency 'RealPongCoin' does not have its 'consent or approval'
Latest in Software
Otter AI Meeting Agent
As if your work meetings weren't already fun enough, now Otter has a new all-hearing AI agent that remembers everything anyone has said and can join in the discussion
Microsoft's iconic Bliss wallpaper
From pixels to pinot: The Windows XP 'Bliss' wallpaper hill was real and this is what it looks like now
Napster client circa 1999
Former music-pirating platform Napster to be reborn rather ironically as a metaverse for musicians to connect with their fans after $207 million deal
New Discord desktop client themes.
Discord drops big update with 'completely new' in-game overlay and new dark themes for the desktop client
Image for
'No real human would go four links deep into a maze of AI-generated nonsense': Cloudflare's AI Labyrinth uses decoy pages to trap web-crawling bots and feed them slop 'as a defensive weapon'
A screenshot from game Mudborne of a little humanoid frog in a marsh
Five new Steam games you probably missed (March 24, 2025)
Latest in News
A long bendy arm stealing money from people in a subway car
'You're a very long arm. You steal things. It's a comedy game,' explains developer of comedy game where you steal things with a very long arm
The heroes are attacked by monsters
Pillars of Eternity is getting turn-based combat to mark its 10th anniversary, and that means PC Gamer editors will soon be arguing about combat mechanics again
Image of Ronaldo from Fatal Fury: City of the Wolves trailer
It doesn't really make sense that soccer star Ronaldo is now a Fatal Fury character, but if you follow the money you can see how it happened
Junah beginning a battle in Metaphor: ReFantazio.
Today's RPG fans are 'very sensitive to feeling like they wasted time' when they die, says Metaphor: ReFantazio battle planner—but Atlus still made combat hard anyway
Image of Cersei Lanniser from Game of Thrones: Kingsroad Steam early access trailer
A new Game of Thrones RPG is coming to Steam today with a cast of 'familiar faces,' which is good because it's really the only way to tell it's a GoT game at all
The new Prime Asset featured in the upcoming update for the Outlast Trials.
The Outlast Trials puts its already paranoid players under surveillance for a time-limited story event