New rules on cryptocurrencies in the EU

MEPs have agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including cryptocurrencies such as bitcoins.

For those issuing and trading crypto-assets, the new rules include:

  • Transparency and disclosure to boost consumer confidence and ensure they are better informed about risks, costs and charges;
  • Reduction of high carbon footprint of crypto-currencies with a proposal to include in the EU taxonomy for sustainable activities any crypto-asset mining activities that contribute substantially to climate change, by 1 January 2025; and
  • ESMA to supervise the issuance of asset-referenced tokens, with the EBA in charge of supervising electronic money tokens.

The new rules aim to provide a uniform legal framework for crypto-assets in the EU that ensures consumer protection and safeguards against market manipulation and financial crime.

FIN. Team