The post EU’s New Rule Relieves Bitcoin Miners from Stringent Crypto Compliance appeared on BitcoinEthereumNews.com.

The European Union’s Markets in Crypto-Assets Regulation has introduced a comprehensive framework to oversee the security of the cryptocurrency sector.  Bitcoin miners can now continue securing the network without additional reporting requirements, which could have complicated their business models. The European Securities and Markets Authority (ESMA) has relieved Bitcoin (BTC) miners and Proof-of-Stake (PoS) validators from market abuse reporting requirements under the EU’s Markets in Crypto-Assets Regulation (MiCA). This decision marks an important distinction between crypto asset service providers (CASPs), such as exchanges, which must comply with strict regulations, and miners and validators, who primarily facilitate blockchain transactions rather than directly engaging in trading activities. In December 2024, ESMA finalized its stance on which entities fall under Persons Professionally Arranging or Executing Transactions (PPAETs). Initially, there was uncertainty about whether miners, validators, builders, and searchers would need to monitor and report suspicious activities in crypto markets. However, ESMA has officially excluded these groups from the PPAET classification, ensuring they will not be required to track market abuse. Instead, CASPs like cryptocurrency exchanges will be responsible for market surveillance and compliance. Patrick Hansen, Circle’s director of EU strategy and policy, praised ESMA for taking a balanced approach to regulation. He stated: “Important decision by ESMA. And good to see they took the potential negative impact for the industry and the EU into account, highlighting how a different decision could have incentivized these miners/validators to leave or avoid establishing in the EU, pushing innovation offshore.” The Global Shift in Bitcoin Mining Despite positioning himself as a pro-crypto president, Donald Trump’s trade policies have created hurdles for Bitcoin miners in the United States. A significant concern for the U.S.-based Bitcoin miners is the impact of tariffs on Chinese imports. While these tariffs were intended to protect American manufacturing, they have driven up costs…

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Filed under: News - @ March 8, 2025 9:24 am