AMLD — Anti-Money Laundering Directive
Overview
The Anti-Money Laundering Directive (AMLD) sets out EU-wide standards for combating financial crime. It requires customer due diligence, risk assessments, record-keeping, and reporting of suspicious activity. Its main focus is the prevention of illicit finance.
Who it affects
AMLD applies to financial institutions, exchanges, custodians, and other obliged entities. For crypto, it extends AML obligations to service providers, requiring them to identify users and report unusual transactions.
Why it matters for crypto
It builds trust and compliance by deterring money laundering and ensuring transparency in crypto transactions.
GDPR — General Data Protection Regulation
Overview
The General Data Protection Regulation (GDPR) governs how organizations handle personal data. It enforces data processing principles, transparency, user consent, and privacy rights such as access, rectification, and deletion.
Who it affects
GDPR applies to any entity processing the personal data of EU residents, regardless of where the company is based. Crypto exchanges and wallets must ensure compliance when dealing with EU users.
Why it matters for crypto
GDPR enhances user confidence by requiring strong data security and privacy measures within crypto platforms.
MiFID II — Markets in Financial Instruments Directive
Overview
The Markets in Financial Instruments Directive II (MiFID II) enhances investor protection and promotes transparency across EU financial markets. It establishes strict conduct of business rules, product governance, and cost transparency obligations.
Who it affects
MiFID II applies to investment firms and trading venues. For crypto, it’s relevant if a token qualifies as a financial instrument or is traded in a securities-like manner.
Why it matters for crypto
It ensures investor protection and fair trading environments, strengthening market integrity when tokenized assets fall within financial regulation scope.
MiFIR — Markets in Financial Instruments Regulation
Overview
The Markets in Financial Instruments Regulation (MiFIR) complements MiFID II by focusing on trading obligations, data transparency, and regulatory reporting. Its aim is to make markets more efficient and transparent.
Who it affects
MiFIR primarily impacts trading venues, brokers, and investment firms. In crypto, it may apply where tokens are categorized as financial instruments under EU law.
Why it matters for crypto
It ensures better price transparency and reporting for tokenized assets, helping align crypto markets with traditional financial standards.
MiCA — Markets in Crypto-Assets Regulation
Overview
The Markets in Crypto-Assets Regulation (MiCA) establishes a unified EU framework for crypto-asset issuance and crypto-asset service providers (CASPs). It defines disclosure obligations, licensing conditions, and operational conduct rules.
Who it affects
MiCA applies to crypto-asset issuers and CASPs across the EU, including trading platforms, custodians, and wallet providers.
Why it matters for crypto
MiCA promotes transparency, user protection, and market integrity, giving crypto businesses legal clarity and users more confidence.
DORA — Digital Operational Resilience Act
Overview
The Digital Operational Resilience Act (DORA) strengthens the cybersecurity and ICT risk management of EU financial institutions, ensuring they can withstand, respond to, and recover from operational disruptions.
Who it affects
DORA covers financial entities and ICT service providers within the EU financial sector, including crypto firms offering services that fall under financial oversight.
Why it matters for crypto
It helps crypto service providers protect systems and user assets from cyber threats through standardized risk management and resilience testing.
EU TFR — The “Travel Rule” for Crypto Transfers
Overview
The EU Transfer of Funds Regulation (TFR) applies the FATF Travel Rule to crypto transfers, ensuring transparency and traceability of crypto transactions across the EU.
Who it affects
TFR applies to crypto-asset service providers (VASPs/CASPs) that transfer crypto-assets between users or other platforms.
Why it matters for crypto
It requires that sender and receiver information accompany each crypto transfer, helping detect and prevent illicit activities.
FAQ
Do MiCA and AMLD apply at the same time?
Yes. MiCA governs crypto-specific licensing and conduct; AMLD sets AML/CFT standards. A crypto service provider typically needs to comply with both.
When do MiFID II/MiFIR matter for crypto assets?
When a token qualifies as a “financial instrument.” In that case, securities rules under MiFID II/MiFIR, not MiCA, generally apply.
What’s the practical impact of the EU TFR on users?
Users may need to provide or verify sender/recipient details for certain transfers, improving safety and compliance.
Disclaimer: This content is for general information only and is not legal, tax, or compliance advice. Regulations evolve, and applicability depends on specific facts and jurisdictions. Consider consulting qualified counsel.
