EU Parliament adopts crypto oversight rules after MiCA

The European Parliament adopted a position on digital assets on the day the Markets in Crypto-Assets (MiCA) transition period concluded, setting out guidance on supervision, consumer protection and market integrity for crypto activity in the EU.

The approved text clarifies which national regulators and the European Securities and Markets Authority (ESMA) will oversee specific crypto activities and how cross-border enforcement should be coordinated. It addresses licensing and authorization for crypto firms, requirements for transparency and disclosure to consumers, and measures to prevent market abuse and fraud.

The position sets expectations for operational resilience and governance of trading platforms and custodians, and details conditions for marketing communications and disclosure of risks to retail investors. Service providers must publish clear custody policies, explain how client assets are segregated and outline procedures for insolvency scenarios.

On stablecoins and asset-referenced tokens, the text requires strict capital, governance and reserve arrangements for tokens accepted for payments or used as a means of exchange. Enhanced oversight is called for where token designs could affect monetary or financial stability, with cooperation expected between financial supervisors and central banks.

The position requires alignment of crypto-asset transaction reporting with existing anti-money laundering frameworks. National financial intelligence units, supervisors and market regulators are directed to coordinate more closely to detect and address suspicious activity linked to crypto markets.

The text preserves pathways for registered providers and newly authorized firms to operate across the single market while imposing safeguards. It asks for proportionate requirements for smaller firms and supports regulatory sandboxes or pilot regimes to test new services under supervisory oversight.

Parliament’s position notes that the package aims to reduce legal uncertainty for businesses and investors now that MiCA’s initial phase has closed. The position will be used in negotiations with EU member states and the European Commission as the institutions work to finalise the bloc’s longer-term framework for digital assets.

Background: MiCA established a unified EU rulebook for crypto assets, including stablecoins, issuers and crypto-asset service providers. The regulation set requirements for transparency, governance and market conduct and created new authorization processes. With the transition phase ending, Parliament moved to define implementation details and supervisory responsibilities to manage risks tied to an expanding crypto market.