Happy EU Year – Cryptocurrency Regulations Coming from Brussels in 2024 – DL News

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a happy new year! In a bar here.

Europe has moved forward with cryptocurrency regulation in 2023, and there is more to come.

Here's what to look out for in 2024.

Regulators are tying up loose ends, MiCA is coming into effect, and the DeFi report is coming

In 2024, EU financial regulators will publish the final set of consultations to fill out the remaining details for regulating markets in crypto assets before they go live.

• January/February: The European Securities Markets Authority will publish a consultation on investor protection and market abuse.
• February: The European Banking Authority will publish a consultation on recovery plans.
• June: Joint consultation on the classification of crypto assets.

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This first phase of MiCA will start from June, when rules addressing stablecoin issuers will come into effect.

Stablecoin issuers will have new liquidity and disclosure requirements. They must also publish a whitepaper for every crypto asset available for trading on exchanges.

The second phase of implementation follows six months, and deals with the licensing of crypto-asset service providers.

This means that companies must comply with rules on capital requirements, internal controls, and governance – unless their home countries choose to extend the transition period to mid-2026.

At the same time, the Money Transfer Regulation, which aims to combat money laundering, will be implemented.

• June 30: MiCA stablecoin rules go into effect.
• 30 December: MiCA and TFR rules come into effect

MiCA does not include rules for DeFi, but the regulation forces the European Commission to publish a report assessing DeFi markets. A legislative proposal could follow.

The report is due to be released 18 months after MiCA comes into force in June, so we can expect a report by the end of 2024.

• December: Estimated publication date of the EU Commission's DeFi report.

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Blockchain infrastructure payment

At the push of the Belgian Digital Minister, the European Commission is set to launch a new political body – the European Digital Infrastructure Union.

The consortium will roll out blockchain at an EU level to renew public infrastructure.

• January 1: Belgium assumes the presidency of the Council of the European Union for a period of six months.
• February: Expected launch date of the consortium.

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AML rules for DeFi

EU lawmakers were unable to finish negotiating a draft law on anti-money laundering in 2023. So, we are now looking at 2024.

The bill covers decentralized autonomous organizations, non-fungible token platforms, and decentralized finance platforms. There are also limitations to self-hosted wallets.

Negotiations are scheduled to begin again, and could end in January.

• January 17: Tripartite – and perhaps final – negotiations took place.
• April: The estimated date on which the European Parliament may hold a general vote on the regulation.

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Digital finance rules

Lawmakers in the European Parliament are working on several digital finance bills.

These bills set controls on how customers and businesses handle financial data, and set rules for payment services.

Stablecoin issuers and some crypto asset service providers are included. Legislation related to the controversial digital euro is also still on the table.

The Economic and Monetary Affairs Committee votes on:

• January 29: Third Directive and Regulation for Payments Services.
• March 21: Regulation on access to financial statements.

Dora

The Digital Operational Resilience Act comes into force after the launch of MiCA at the end of 2024.

DORA will force crypto service providers to submit regular reports to regulators and demonstrate their ability to manage technology risks.

• January 17, 2025: DORA implemented.

Email the author at inbar@dlnews.com.