The European Union (EU) has taken a decisive step towards creating a more accountable and transparent crypto industry. Following a meeting in Brussels, the 27 members of the EU Council have approved the Markets in Crypto Assets regulation (MiCA), a move designed to enhance the regulation of crypto assets and inhibit their misuse for illegal activities.
Sweeping Changes for Crypto-Asset Holders
Finance ministers across the EU have come together to ratify a new set of rules targeted at crypto assets.
Sweden’s finance minister Elisabeth Svantesson expressed satisfaction at the development, saying, “I am very pleased that we are delivering on our promise to start regulating the crypto-assets sector.”
She emphasized the importance of such regulations in shielding Europeans who have invested in crypto assets and curbing the potential misuse of the crypto industry for money laundering and terrorism financing.
The new regulations necessitate all firms to acquire a license for issuing, trading, and safeguarding crypto assets, stablecoins, or tokenised assets within the EU.
Furthermore, from January 2026, regardless of the transfer amount, all service providers will have to procure the names of any senders and beneficiaries in crypto assets.
EU New Crypto Regulations: Tax Evasion and Fraud
The member nations of the EU are also exploring changes to taxation rules to accommodate transactions in crypto-assets. This includes the exchange of information on advance tax rulings for wealthier individuals. The EU’s move aims to prevent crypto assets from “reducing transparency and enabling tax evasion or fraud,” as noted by European commissioner for trade Valdis Dombrovskis.
Dombrovskis further emphasized, “Updating our tax rules to address these issues will help national administrations to collect tax more efficiently and keep up with evolving technology, as Europe moves forward with its digital transition.“
Implications for the iGaming Industry
These sweeping changes will undoubtedly have profound implications for the iGaming industry.
- Increased Transparency: The new regulations will ensure a more transparent crypto environment, making it harder for funds to be obscured or hidden, thereby protecting both iGaming businesses and their customers.
- Improved Regulatory Compliance: The obligation for crypto service providers to obtain a license is likely to increase regulatory compliance, giving iGaming operators more confidence in using crypto-based payment methods. This might mean a surge in crypto casinos, NFT gambling and web3 lotteries.
- Reduced Risk of Money Laundering: By mandating all service providers to disclose the names of senders and beneficiaries in crypto transactions, the risk of money laundering is significantly diminished, offering a safer environment for both operators and players.
