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New rules on cryptocurrencies in the EU

European Union flags in front of the Berlaymont building (European commission) in Brussels, Belgium.

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.

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