On Tuesday, a major development took place as finance ministers from the European Union (EU) unanimously approved the Markets in Crypto Assets regulation (MiCA). This decision establishes Europe as the first significant jurisdiction to develop a crypto licensing regime and also brings forth new anti-money laundering measures on crypto funds transfers. The Council of the EU, representing 27 member states, gave its stamp of approval to the new rules.
Today marks a significant milestone in our commitment to regulating the crypto-assets sector. Elisabeth Svantesson, minister for finance of Sweden and Council Presidency, commented on the urgency to create rules that would safeguard European investors from exploitation and any potential misuse by nefarious actors like money launderers and terrorists. In her statement, she said, “Recent events have made it abundantly clear that we must take steps to protect those who have invested in these assets.”
Acceptance of the laws was widely expected once ambassadors signaled their approval of both MiCA and taxation regulations last week.
In June, the important features of MiCA were legislated and approved. However, it has been subject to bureaucratic hiccups. Expect these major stipulations to come to fruition roughly 12 months after MiCA is printed in the European Union’s official journal; this could potentially take place during June or July. Wallet providers, crypto exchanges, and stablecoin issuers must all acquire a license from the bloc in order to conduct business operations.
In the late afternoon, policymakers concurred on new policies that will require crypto suppliers to divulge data of their clients’ investments to tax administrations, which will then be shared within the European Union in an effort to stop money from being covertly held in foreign wallets.
Valdis Dombrovskis, executive vice-president for an Economy that Works for People, has commented on the possible advantages and disadvantages of utilizing technological advancements such as cryptocurrencies and digital payment systems. In a statement, he said: “Crypto-assets and e-money can definitely boost economic growth and progress but they also raise some concerns, including reduced transparency and chances of tax evasion or fraud.”
On Friday, the latest version of DAC8 was revealed by European Commission, which initially proposed these new tax regulations back in December. It followed a model from OECD and has yet to receive approval from European Parliament before officially being implemented.
