European Crypto Regulation: A Summary of Law by Country

This Expert Guide provides an overview of cryptoasset regulation (prior to the introduction of MiCA), focussing at this point on European jurisdictions, both inside and outside the EU. We summarise the regulations applying to the main activities performed by cryptoasset service providers and the requirements of the licensing regimes, including time and cost. Our aim is to provide information which is both legally accurate and a practical aid for decision-making. If you require further advice in any of these jurisdictions, please reach out to us or direct to the relevant lawyers (contact details provided).

Europe had established itself as a leading centre for crypto innovation when anti-money laundering (AML) regulation arrived in 2019/2020. AML regulation was implemented in an inconsistent manner, even among the member states of the EU, with some jurisdictions enacting and enforcing laws years before some others. Certain jurisdictions went above and beyond the FATF recommendations, with some including crypto within their financial services regulation. This created the current regulatory landscape which is highly fragmented and inconsistent. While there are some common themes across jurisdictions (in particular, regulation for anti-money laundering (AML) and countering the financing of terrorism (CFT) controls), there is significant divergence between them.

We have had to wait a few years for the dust to settle on the implementation of AML regulation and it seems unlikely that there will be significant changes in the EU before the implementation of the Regulation on Markets in Crypto Assets (MiCA). However, the implementation of MiCA will be staggered, so the patchwork of national regulations in the EU will continue to present a challenge for some time. 

In addition to contributions from our colleagues at CMS, this Expert Guide contains the work of lawyers from other leading firms.