Europe in the crypto spotlight: Leading thanks to MiCA regulation!

Europe in the crypto spotlight: Leading thanks to MiCA regulation!

In a recent report by Gemini titled “Global State of Crypto Report 2025,” Europe is highlighted as the leading crypto ecosystem in the world. The report notes that numerous crypto exchanges, including Gemini itself, are competing for the coveted MiCA license. This regulation plays a key role in the future development of the sector in Europe as it creates the framework for the use and trading of crypto assets. Loud BTC Echo Europe is becoming the spearhead of global crypto adoption. Some European countries have made a particularly strong push into crypto adoption.

The regulatory landscape

A central component of the εξελίξεις is the “Markets in Crypto-Assets” (MiCA) regulation, which aims to ensure risk-appropriate regulation and increased investor protection. How BaFin explains, MiCA creates legal certainty for innovations in the area of ​​distributed ledger technologies. The regulations on asset-referenced cryptoassets and e-money tokens are expected to come into force in July 2024, while the bulk of the regulation will apply from early 2025.

When it comes to regulation, Gemini’s Head of Europe speaks about the need to close the gender gap in the crypto sector by including more women in investment practices. It is noted that the gender gap in Bitcoin investments is increasingly shrinking.

Regulation and supervision

As part of the MiCA regulation, providers of crypto assets must prepare a white paper and submit it to the supervisory authorities. In addition, trading in crypto assets in Germany is subject to licensing as a financial service. Key points of MiCA include definitions of three categories of cryptoassets: e-money tokens, asset-referenced tokens and utility tokens. Common cryptocurrencies such as Bitcoin and Ethereum fall under this regulation.

Permission is required for the public offering of e-money tokens and asset-referenced tokens. Companies that have over 15 million active users are classified as significant providers and are subject to stricter regulatory measures. This supervision is ensured by the ESMA (European Securities and Markets Authority) and the EBA (European Banking Authority), which also collect information on significant providers and maintain a so-called “black list” for providers that do not meet the MiCA requirements.

In addition, the recently adopted Funds Transfer Regulation (TFR) will be extended to the entire EU territory and means that transactions of crypto assets will be subject to customer identification to prevent money laundering. The introduction of the “Travel Rule” for transfers of crypto assets will represent an essential measure to promote legal certainty and investor protection.

Overall, Gemini's report shows that the combination of technological advances and clear regulatory frameworks puts Europe on a promising path as a leading crypto ecosystem. With the upcoming implementation of the MiCA regulation, this dynamic sector will be continuously stabilized and shaped.