European Crypto Initiative

The updated Transfer of Funds Regulation (#TFR) might not be getting the spotlight like MiCA, but its impact is huge. The TFR now covers crypto-asset transfers, ensuring better traceability and fighting money laundering & terrorist financing. As part of our mission to make sense of complex #CryptoRegulation, we put together an overview that covers all the essentials: the rules for Payment Service Providers (PSPs) and CASPs, and insights on the TFR’s impact on anti-money laundering. First up: What’s in the Transfer of Funds Regulation? Read the full overview: bit.ly/ReadTFRIntroduction Or start with the highlights 👇 #ReadTFRWithEUCI #Compliance #DigitalFinance #CryptoAssets #Fintech #AML

New paper by the Bank for International Settlements (BIS) takes a hard look at liquidity provision on Uniswap V3, one of the largest decentralised exchanges (#DEXs). If you don't have time to read 52 pages, here are the highlights: ▶︎ Liquidity provision isn’t as decentralised as we might think. ▶︎ A small, sophisticated group of providers dominates liquidity, contributing 65–85% and earning far greater returns than retail participants. ▶︎ Retail providers, often less active, face challenges in competing during periods of market volatility and capture just 10–25% of trading fees. ▶︎ Institutional players mimic traditional market makers by managing liquidity within narrow price ranges near market rates, excelling during volatile periods without higher risks. ▶︎ Retail participants often use a “set and forget” approach, leading to lower profitability due to fewer adjustments and less active management. ▶︎ High-volume, low-volatility pools are almost entirely dominated by sophisticated liquidity providers, leaving retail players in smaller, less impactful pools. Based on this, the report raises a key question: despite the promise of decentralisation, are DEXs merely replicating traditional market centralisation — just without brokers? Read more about it below. #DeFi #DEXs #Liquidity #Uniswap #CryptoMarkets #Capital #trading

What will change with the AML Package in place? Next week at #BC4EUSummit2024, our Marina Markezic will moderate a panel tackling this tough question. We can't wait to share the stage with Claude Bocqueraz from the European Commission and Isabella Chase from TRM Labs. Thanks Blockchain for Europe for inviting us! The event is FREE — but the insights could be priceless. 👉 Register here: https://lnkd.in/diBCuH8e #BlockchainForEurope #Regulation #AML #CryptoRegulation

Starting TODAY, the European Blockchain Sandbox is accepting applications for its third cohort! 📣 Applications are open now until January 31 for blockchain developers and innovators who want to: ▶︎ Collaborate with regulators for a better understanding of the regulatory challenges (and their solutions) ▶︎ Create a clearer and fairer regulatory environment for the entire blockchain ecosystem ▶︎ Make sure your projects are on the right side of the law, tapping into a supportive environment for new ideas and best practices. https://lnkd.in/dWKzA6cP ↓ More on the European Blockchain Sandbox ↓ The EBS is a European Commission initiative aimed at creating a regulatory space for blockchain innovation. It’s designed to help businesses and regulators work together, figure out potential regulatory issues, and find ways to navigate the legal side of blockchain. European Blockchain Services Infrastructure (EBSI) #EuropeanBlockchainSandbox #CryptoRegulation #EBSI

Life moves fast, and sometimes it’s easy to get lost in the crypto chaos. But don’t worry, we’ve got your back! Our monthly recap is coming soon with the latest happenings in crypto regulation (and more). 💌 Subscribe below or catch the full recap on LinkedIn as soon as it's live: subscribepage.io/5YnnS1 #StayInTheLoop #newsletter #CryptoRegulation

The Dutch Authority for Financial Markets (#AFM) recently released its Trend Monitor 2025, highlighting risks and opportunities for the market — including critical insights for the future of crypto policy in Europe. Here's what stands out 👇 ▶︎ Digitalisation risks ↳ The digitalisation of financial services is introducing new dependencies, raising concerns around concentration risks and cybercrime. Risks are amplified as centralised exchanges and service providers become more integral. This makes crypto more vulnerable to cyberattacks, which could shake market confidence. ▶︎ Regulatory divergence ↳ With increasing globalisation, fragmented regulation and arbitrage are becoming pressing issues. The AFM stresses that crypto markets are inherently international, and therefore, regulation must align globally. While the EU works towards MiCA, it must ensure that crypto regulation not only meets local needs but also works harmoniously with international efforts to maintain a stable market. ▶︎ Integrity and criminal behaviour ↳ Despite MiCA’s introduction of licensing requirements for crypto service providers, consumers must remain vigilant. Some crypto providers may still operate illegally without the necessary licenses, potentially misleading consumers about the risks involved. The AFM also highlights ongoing risks such as market manipulation (e.g., “pump and dump” schemes). This is a critical reminder that while MiCA helps regulate the sector, illegal activities are still a real threat. ▶︎ European capital flight ↳ The report notes that a large portion of European venture capital is flowing to the U.S., which could signal a shift in where innovation—and consequently, regulation—is taking place. For Europe to maintain its competitive edge in digital finance, it will need clear, coherent crypto policies. This is a wake-up call for policymakers advocating for a robust European Capital Markets Union. ▶︎ Realistic expectations for investors ↳ MiCA is not all-encompassing, and certain crypto-assets and services, such as DeFi platforms and NFTs, are still outside its scope. Additionally, MiCA addresses market manipulation, but due to the decentralized nature of crypto, tackling such abuse remains a challenge. Investors must be well-informed and aware of the risks, even with MiCA in place. Read the full report and let us know - What's your take? #CryptoRegulation #MiCA #FinancialMarkets

What a week we had at #Devcon! This year we brought our expertise to Bangkok, in the heart of crypto regulation conversations. Here's a look back at what kept us busy: ⭐️ Our booth was buzzing on the 11th and 12th. We shared our work, networked, and even had the privilege of welcoming Vitalik Buterin! ⭐️ Marina Markezic and Florian Glatz were on stage exploring innovative approaches to financing crypto policy work at #FtCBangkok on November 8. Thanks Funding the Commons for inviting us! ⭐️ We were thrilled to co-host The Reg3 Conference on November 9 with The Binary Holdings and bring together some of the brightest minds in crypto regulation. ↳ Experts Liz Carolina Barahona Q., Shahab Ahmed, and Andreas Glarner joined us for “The State of Global Crypto Regulation”, a panel discussion on how different countries approach regulation and the challenges of creating unified global standards (and more). ↳ We also explored the EU’s ever-changing definitions of decentralisation and their implications for #DAOs and #DeFi projects at our interactive workshop “What are DeFi & DAOs According to the EU Regulator?” ⭐️ We joined Devcon’s Real World Ethereum Track on November 12 for “Bridging the Gap”, a hands-on workshop on communicating effectively with regulators to promote informed and empowered dialogue. ↳ The video recording is already available: https://lnkd.in/dvhrNFbG ⭐️ We had an amazing discussion with founders and C-level leaders during OpenFi, when we talked about building regulatory standards for decentralised finance while upholding self-custody and open-source principles. ⭐️ We co-hosted the DeFi Community Hub on November 13 with DeFi Collective and Party Action People Pte. Ltd.. ↳ Our “[Legal] Taxonomy for DeFi” workshop was packed with information on the importance of precise terminology when engaging with regulators. One of the most talked-about workshops of the event! ↳ We also discussed the risks and responsibilities developers face and how legal clarity can empower them to innovate during the “Developers’ Liability” workshop. ⭐ We joined the Hacktivism Hub on November 14, a safe space for exploring hacktivism culture, cypherpunk ethos, and the practical side of Ethereum's social layers. A huge thank you to everyone who attended our sessions, asked thought-provoking questions and shared their perspectives. We covered a lot at Devcon — what are your thoughts on the topics we explored? Have questions or ideas? #CryptoRegulation

We’re proud to see our advocacy efforts on DL News, with insights from our Senior Policy Expert Vyara Savova, LL.M., Ph.D.—to—be! The next phase of #MiCA implementation is getting closer, and we’ve been working with Blockchain for Europe, Electronic Money Association and INATBA - International Association for Trusted Blockchain Applications to ensure the transition is as smooth and equitable as possible. In the article, Vyara highlights our call to extend MiCA’s grace period until June 2025, ensuring CASPs have the time they need to go through the application process without disrupting services across borders. Key points from the feature: ▶︎ Delays in ESMA’s rules have left CASPs with tight deadlines, risking interruptions to crypto services in the €1 trillion-worth European market ▶︎ Varied grace periods across EU member states create additional challenges for firms relying on MiCA’s passporting rules ▶︎ Harmonising grace periods or extending them would provide much-needed clarity and stability. Thanks to Joanna Wright for covering this important issue! Read the full article here: https://lnkd.in/d2nzMFhN #CryptoRegulation #DigitalAssets #CryptoNews

#MemoryMonday to ETHSofia, when our Vyara Savova, LL.M., Ph.D.—to—be moderated "Regulation and Innovation: Policies, Challenges, and Future Trends". The conversation covered the biggest questions in #CryptoRegulation, from MiCA’s impact on the global landscape to the challenges of DeFi. More below👇 ▶︎ Jonathan Galea shared his insights on #MiCA — the EU’s most comprehensive crypto regulation to date - and focused on its challenges, especially in relation to stablecoins. Can the regulation keep pace with innovation? Time will tell. ▶︎ Diana T. shared her firsthand experience with the licensing process under MiCA. While MiCA aims for unity across the EU, Diana highlighted how different member states interpret and apply the rules, with some countries even halting applications. It’s clear that MiCA compliance isn’t always a straightforward process. ▶︎ Vladimir S. took the discussion globally, comparing the EU’s approach to that of the US, where litigation plays a major role. ▶︎ Svetlin Konsulov, CAMS, LL.M. highlighted what MiCA doesn’t cover — #DeFi. While MiCA’s Recital 22 exempts sufficiently decentralised projects, the definition of "decentralised" remains a grey area, leaving room for interpretation by local authorities. It was a great discussion highlighting both the challenges and opportunities ahead for crypto regulation. Thanks to our amazing speakers for joining us! 🫶

We’re excited to share that European Crypto Initiative — alongside Electronic Money Association (EMA), INATBA - International Association for Trusted Blockchain Applications and Blockchain for Europe — has been highlighted in POLITICO’s Fintech section for raising concerns about the delays in critical crypto regulations. In our joint letter addressed to DG FISMA and ESMA, we’re calling for immediate action over the delays in adopting technical standards needed for providers to obtain authorisation under the new EU crypto regulations coming into effect at the end of 2024. ▶︎ The clock is ticking, and the lack of clarity on regulatory standards is creating unnecessary uncertainty for providers. ▶︎ These delays could lead to service disruptions, potentially harming consumers and destabilising the single market. ▶︎ We’re urging a suspension of the new procedures until June 2025 to ensure providers have the time they need to comply, without disrupting the market. Read more about it below and tell us - What are your thoughts on these delays? #CryptoRegulation #Fintech