Both institutional and retail investors have jumped on the cryptocurrency bandwagon in recent years, signaling more widespread acceptance of the use of digital currencies around the world. But while opportunities in the cryptocurrency market are ever-evolving, they have far outpaced oversight efforts by regulators.
In the EU today, the regulation of cryptocurrencies is the same set of regulations that preside over traditional securities and commodities, creating an urgent need to put safeguards in place for investors and consumers, and to stop the proliferation of money laundering through the use of cryptocurrency or blockchain technology.
In this Client Alert, Emilia Drozda explores two steps the EU has recently taken to bolster its crypto regulatory framework. Specifically:
1. Establishing the Regulation on Markets in Crypto-Assets (MiCA)
2. Addition of Cryptocurrency Requirements in the New EU AML Directives