- This significantly increases the chances of ratifying the bill in its original format
- The EU Council also approved an amendment to the Administrative Cooperation Directive
- These are designed to address the problem of cryptocurrency capital gains tax non-payers
The EU Council of Ministers today, May 16, unanimously approved a set of rules for cryptoasset markets (MiCA) and the DAC8 amendment.
This significantly increases the chances of final ratification of the regulatory framework.
After that, the EU will become the first jurisdiction in the world to introduce a cryptocurrency licensing regime.
We previously covered both the regulatory framework itself and the potential effect of.
Recall that the EU advocates the global implementation of MiCA, which will make the sector more transparent and regulated.
This set of rules effectively introduces a licensing regime for service providers. In addition, MiCA requires stabelcoin issuers to hold sufficient collateral in physical assets.
Market participants are also required to adhere to AML rules and implement the KYC mechanism.
What about the DAC8 amendment, which was also approved by the Board, is analogous to the “Trade Rule” from the FATF.
Its task is to stop the practice of concealing income by cryptocurrency investors, using the “gray zones” where capital gains in digital assets are not taxed.
MiCA will come into force one year after the official ratification, which is expected in June-July.. As for the amendment, it will probably take effect after the regulatory regime changes.