New rules for cryptocurrencies in the EU: what will change in 2025

Starting December 30th, another component of the Markets in Crypto-Assets (MiCA) regulation officially kicked into gear, radically changing how cryptocurrencies are regulated across European Union countries. Here’s what’s new:

1. If a transaction exceeds 1000 euros, mandatory verification of the owner of a non-custodial wallet through KYC (Know Your Customer) procedures is required. This means the personal data of owners must be linked to the wallet. However, it’s still unclear whether verification will be needed before each transaction or if it’s sufficient just to confirm wallet ownership once. Also, how this will work for transfers between exchanges is yet to be determined.
2. A complete ban on anonymous crypto payments aimed at combating money laundering and terrorism financing. However, this could limit access to decentralized financial services (DeFi).
3. Stablecoins ban. From 2025, fully algorithmic and some other stablecoins like Tether (USDT) will be banned from trading within the EU due to non-compliance with MiCA requirements.
4. Crypto asset issuers will need to obtain a licence, create detailed white papers (project descriptions), and adhere to strict risk management and reporting requirements. This could lead to reduced competition in the market, as small companies might not financially withstand these procedures.
5. The popularity of decentralized exchanges (DEX) might increase to avoid excessive control, although their future status could also change. More people may also turn to mixer services to obscure transaction histories, but this could raise suspicions among regulators. Crypto enthusiasts might switch to alternative assets, such as anonymous cryptocurrencies. Yet, Monero (XMR) is already facing bans in the EU.

Meanwhile, Tether has invested in the European company StablR, which holds an electronic money license in Malta. This could help the stablecoin USDT to comply with MiCA requirements, as StablR already operates within EU regulatory standards.

Additionally, on December 30th, MoonPay, a provider of cryptocurrency payment solutions, officially obtained a license to operate under the EU MiCA regulation.

Source:  MoonPay, Finbold, idnow.io,