Major Development in EU Crypto Regulations
Big news in the EU crypto space! On January 18, 2025, Crypto.com announced an in-principle approval for their MiCA license, making them the first major global crypto service provider to achieve this milestone.
For context, the MiCA framework, introduced by the European Union (EU), aims to create a robust regulatory structure for digital assets, focusing on consumer protection, market transparency, and maintaining legitimacy.
All crypto businesses operating in the EU will need to comply with MiCA’s transparency, disclosure, and governance rules, which include stricter anti-money laundering measures and requirements for stablecoin issuers to ensure adequate reserves for consumer protection.
🇪🇺 Crypto.com is proud to be the first major global crypto asset service provider to receive in-principle approval for its MiCA Licence 🇪🇺
This license will allow the company to expand services across the EU under the new regulatory framework.
— Crypto.com (@cryptocom) January 17, 2025
Commenting on this development, Eric Anziani, President and COO of Crypto.com remarked, “We’ve always backed MiCA, and we’re confident it will bring much-needed clarity and structure to the crypto space across the EU—boosting confidence in the industry.”
In 2021, Crypto.com secured a Class 3 Virtual Financial Assets (VFA) License from the MFSA, enabling order execution, custodial services, and trading capabilities. They also received provisional approval for a Financial Institution License from MFSA.
The company recently extended its partnership with Formula 1 through 2030.
Institutions Adapt to EU’s Growing Crypto Affinity
In Europe’s increasingly digital landscape, institutions face a pressing question: how to adapt to the rising influence of crypto-assets and the digital transformation of value? Major players like Revolut, N26, Deutsche Bank, and Société Générale are already offering crypto services, showing how the financial sector is evolving alongside these innovations.
Crypto.com and Regulatory Framework of MiCA
As blockchain and digital assets continue their surge, regulators worldwide are grappling with the decision to regulate or not. With the MiCA framework now in place, businesses will need to navigate complex compliance requirements while balancing innovation with risk management, pushing for further integration of traditional finance and crypto-native firms.
MiCA signifies a pivotal step towards regulatory clarity in the crypto domain, but its strict compliance requirements necessitate cooperation between regulators and industry representatives.
Disclaimer
Crypto is a high-risk asset class. This article is for informational purposes and does not constitute investment advice. You could lose all of your capital.
For further information, you can explore EU Crypto Policy: What To Expect In 2025?.
