The Regulatory and Investigations team at Clyde & Co has been closely monitoring developments in regulation surrounding digital assets. News has just come in that the EU has moved one step forward in its radical attempt to create a rigorous legal and regulatory framework for digital assets: proposals Markets in Crypto-Assets (MiCA) regulation and the Transfer of Funds (TFR) regulation have been endorsed by the EU Council and are due to be voted on shortly by the EU Parliament.
If the new regulations are passed, they will progressively come into effect in stages from end of 2023. Here is an outline of some of the key changes to be expected:
There are concerns about the difficulties in complying with the TFR regulations with some viewing these changes as an unwarranted punishment on crypto holders and exchanges. We intend to work closely with our clients impacted by the new regulations to help them effectively implement the relevant programs and processes to facilitate the transition into the new regime.