Regulation in Europe
The Council of Europe has adopted new rules for regulating digital assets under the Markets in Crypto-Assets (MiCA) framework. This follows from the council's announcement.
It is noted that the new rules aim to increase transparency in the crypto sphere and include measures to combat money laundering. The document introduces a unified legal framework for crypto companies from European Union countries.
Cryptocurrencies in Europe are regulated through various bodies and legislative acts. Each country in Europe may have its own rules and regulations, but there are also pan-European approaches to regulating cryptocurrencies and blockchain. Here are some common aspects of cryptocurrency regulation in Europe:
- 5th Anti-Money Laundering Directive (5AMLD): This is an update to the EU Directive on combating money laundering and terrorist financing (AML/CFT). The 5AMLD directive includes obligations for entities involved in cryptocurrencies, such as exchange and storage platforms, and sets rules for KYC and transaction monitoring.
- Securities regulators: Various European countries have different regulatory bodies that may consider cryptocurrencies as securities and apply relevant laws and regulations.
- National banks: National banks may take a position on cryptocurrencies and their status as means of payment, as well as issues related to investments and security.
- European Central Bank (ECB): The European Central Bank does not directly regulate cryptocurrencies but may express its position on cryptocurrencies as a form of money and their impact on financial stability.
- Consumer protection legislation:: Issues related to cryptocurrencies and ICOs may also be regulated by consumer protection laws to prevent fraud and ensure user safety.
- General Data Protection Regulation (GDPR): Organizations dealing with crypto assets must comply with GDPR to ensure the protection of customers' and users' personal data.