EU Crypto Regulations Tighten as Digital Euro Progress Continues

The European Union has made several key developments in its regulatory approach to cryptocurrencies and digital assets. The end of MiCAR's transitional period on July 1st, 2026 marked a crucial deadline for Crypto-Asset Service Providers (CASPs) to obtain authorization under the Markets in Crypto-Assets Regulation (MiCAR). Without this authorization, CASPs risk being unable to provide services in the EU.

The European Parliament has also adopted its position on the digital euro package, enabling trilogue negotiations between the Parliament, Council of the European Union, and European Commission. This development comes as the European Central Bank (ECB) continues to progress its work on the digital euro rulebook, publishing a revised version following market consultation.

The ECB has also selected 36 payment service providers (PSPs) from across the EU to participate in the digital euro pilot, which will begin in the second half of 2027. The ESRB's annual report highlighted regulatory concerns related to crypto-assets and decentralized finance, particularly the growth of the global stablecoin market.