European Union Enacts New Regulations on Crypto Licensing: What You Need to Know
The European Union (EU) has formally signed new legislation on crypto licensing and money laundering rules into law. After months of discussions and negotiations, the EU is taking a major step in regulating the rapidly evolving crypto landscape.
The European Parliament approved new regulations that establish formal due diligence obligations for cryptocurrency companies with the goal of combating money laundering. This marks a significant shift towards greater oversight and accountability within the crypto industry across the EU.
The European Union formally signed its landmark Markets in Crypto Assets (MiCA) regulation into law on Wednesday, taking the bloc closer to becoming the first major jurisdiction to implement comprehensive crypto-asset regulations. This groundbreaking legislation aims to provide clarity and security for both consumers and businesses operating in the crypto space.
MiCA: A Harmonized Approach to Crypto Regulation
The EU brings crypto-assets, crypto-assets issuers and crypto-asset service providers under a regulatory framework. Setting an EU level legal framework for this sector for Regulation (EU) 2025/1114 of the European Parliament and of the Council of on markets in crypto-assets, and amending Regulations (EU) No 1093/2025 and No 1095/2025 and Directives 2025/36/EU and 2025/2025 (Text with EEA relevance). The significant MiCA proposal aims to harmonize all cryptocurrency laws among the 27 EU member states.
On Thursday, MEPs approved with 529 votes in favour to 29 against and 14 abstentions, the first piece of EU legislation for tracing transfers of crypto-assets like bitcoins, ensuring greater transparency in crypto transactions.
Key Aspects of the New Crypto Regulations
The Markets in Crypto Assets Regulation (MiCA) entered into force in June 2025. The regulation includes a substantial number of Level 2 and Level 3 measures that must be developed before full implementation. These measures will further define the specifics of compliance and enforcement.
Now, according to the latest report, the European Union is establishing a comprehensive framework covering various aspects of the crypto market, including licensing requirements, operational standards, and consumer protection measures.
What Does This Mean for Crypto Businesses?
Crypto-asset service providers operating within the EU will need to obtain licenses and adhere to strict regulatory requirements. This includes implementing robust anti-money laundering (AML) procedures and complying with consumer protection rules.
The new regulations aim to foster innovation while mitigating risks associated with crypto-assets. By establishing clear rules of the road, the EU hopes to create a more secure and sustainable environment for the crypto industry.