EU CryptoReg roundup: October 2025

Welcome to our EU crypto update - a roundup of key Irish and EU legislative and regulatory developments shaping the crypto-asset sector. 

This update is brought to you by our Regulatory & Risk Advisory practice group in Ireland. 

Our aim is to keep you informed of the fast-evolving legal landscape, from new legislation and guidance to significant case law and observations.

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Key developments this month include:

• publication of the Finance Bill 2025 to transpose CARF/CRS2.0 in Ireland
• updates to MiCAR Level 2 standards on ART/EMT liquidity of reserve assets
• updates to ESMA MiCAR Q&As on how to distinguish between different execution services, and responsibilities with regards to white papers admitted to trading prior to 30 December 2024
• ESMA remarks on the European Commission's intention to propose empowering ESMA as the supervisor of selected cross-border CASPs
• ESRB recommendations on dealing with third-country multi-issuer stablecoin schemes in light of MiCAR
• Eurosystem moving to next phase of digital euro project

Legislation and guidance 

Ireland

Legislative Bill to transpose CARF/CRS2.0

16 October 2025 – The Minister for Finance has published the Finance Bill 2025 and an Explanatory Memorandum to transpose the OECD (2023), International Standards for Automatic Exchange of Information in Tax matters: Crypto-Asset reporting Framework (CARF) and the 2023 update to the Common reporting Standard (CRS2.0).

• The Bill gives domestic effect to DAC 8 by adopting the OECD CARF and CRS2.0 into Irish law.
• CARF requires reporting Crypto Asset Service Providers (RCASPs) to register with Revenue by 31 December 2026, to conduct CARF due diligence on customers and to submit reports covering asset and transaction data, with first CARF returns due by 31 May 2027 covering the 2026 period.
• RCASPs for these purposes include crypto exchanges, brokers and dealers and platforms facilitating crypto transactions, which may include certain decentralised exchanges.
• CRS2.0 bring certain e-money products and Central Bank digital currencies within the definition of depositary account, as well as derivatives referencing crypto-assets within the definition of financial assets. 
• The Finance Bill must pass through the Irish legislative process and is expected to be signed into law before the end of the year.

European Union 

MiCAR Level 2 standards on ART/EMT liquidity of reserve assets

3 October 2025 - Commission Delegated Regulation (EU) 2025/1264 on the liquidity management policy to meet redemption requests for certain ART/EMT issuers published in the official journal of the EU.

• Regulatory technical standards (RTS) specifying the minimum contents of the liquidity management policy and procedures for certain issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs).
• These RTS specify the requirements for certain issuers of ARTs and EMTs with regards to the policies and procedures for identifying, measuring and managing liquidity risk, liquidity risk mitigation tools and the process and procedures to test scenarios of liquidity stress. 
• These RTS apply to issuers of significant ARTs/EMTs or issuers of ARTs/EMTs which are not significant but where required by a competent authority under MiCAR.
• This Commission Delegated Regulation entered into force on 23 October 2025.

10 October 2025 - The European Banking Authority (EBA) published two opinions in response to the European Commission’s amendments relating to the draft RTS which specify the composition and liquidity requirements, particularly the financial instruments that can be considered highly liquid, regarding the reserve assets for ART issuers and issuers of significant EMTs under MiCAR. 

• The first opinion relates to the draft RTS to further specify the liquidity requirements of the reserve of assets for ART issuers under Article 36(4) of MiCAR.
• The second opinion relates to the draft RTS to specify the highly liquid financial instruments with minimal market risk, credit risk and concentration risk under Article 38(5) of MiCAR.
• Issuers of significant EMTs are also subject to these MiCAR requirements and the draft RTS.
• The EBA notes that the European Commission's amendments could be interpreted as allowing investments of issuance proceeds into non-highly liquid financial instruments.
• With the publication of these two opinions, the EBA reaffirms its close scrutiny of the implementation of the MiCAR prudential framework for asset-referenced and e-money tokens, in particular regarding the liquidity, credit and concentration risks of the reserve of assets and their implications for financial stability.

Updates to ESMA MiCAR Q&As

14 October 2025 – ESMA_QA_2653 - How to distinguish between different execution services.

• In this Q&A the European Securities and Markets Authority (ESMA) notes that National Competent Authorities (NCAs) should not rely solely on the qualification provided by the crypto-asset service provider (CASP), or the terms used by the CASP in the contractual or marketing documentation. Instead, special attention should be paid to the order fulfilment flow, including if the CASP acts in any or several of the following capacities: a counterparty to the client, an agent concluding agreements on behalf of the client or routing their orders to third parties who in turn will conclude agreements on behalf of clients.
• Execution services are applicable when a CASP acts as an agent of the client and concludes a contract or agreement concerning the purchase or sale of crypto-assets, on behalf of the client.
• RTO services (reception and transmission) are applicable when a CASP transmits orders to a third-party for execution or onward transmission.
• Exchange services are applicable when a CASP transacts with a client by acting as its counterparty with proprietary capital.
• ESMA further notes that the fact that a CASP acts as a client’s counterparty to fulfil a client order does not per se indicate that such CASP is solely providing exchange services. ESMA notes that to understand whether a CASP provides exchange services, execution services or both, the relationship between the CASP and its client must not be assessed solely on the basis of the service agreement, but a fact-specific analysis should be conducted (e.g.  what a reasonable person in the client’s position would understand to be the case). In case of doubt, when a CASP deals with retail clients, a more conservative approach should be taken and there should be a presumption that the CASP acts as an agent and thus provides execution services (where best execution requirements apply).

14 October 2025 – ESMA_QA_2654 - Offerors and CASPs' responsibilities with regards to white papers for Title II tokens admitted to trading prior to 30 December 2024.

• ESMA notes in this Q&A that MiCAR requires that for Title II crypto-assets admitted to trading prior to 30 December 2024, offerors and persons seeking admission to trading must only comply with marketing rules. There is no white paper requirement. 
• Operators of trading platforms must, by 31 December 2027, ensure there is a white paper. In line with Article 66(3) of MiCAR, they must also publish hyperlinks to any existing (registered) white papers. 
• The other CASPs referenced in Article 66(3) MiCAR (i.e. CASPs providing exchange services, advice or portfolio management on crypto-assets) must only publish hyperlinks to any existing (registered) white papers. Where there are no such white papers, they do not have the responsibility to ensure they are produced. 
• If the crypto-asset is not available on a trading platform, there might not be a white paper for it even after 31 December 2027.

ESMA updates to MiCAR White Paper Taxonomy 2025

October 2025 - ESMA updates to MiCAR White Paper Taxonomy 2025 page.

• ESMA has updated its MiCAR White Paper Taxonomy 2025 page with the Annex - show case: simple Excel-based solution to generate white papers in iXBRL, consisting of Excel-based solutions to generate:
   
  • EMT token white papers in iXBRL;
  • ART token white papers in iXBRL; and
  • OTHR token white papers in iXBRL.
    
    
• The Excel-based solutions and related documents assist reporting entities (i.e. issuers of crypto-assets, offerors, persons seeking admission to trading of crypto-assets and CASPs) obliged under the Commission Implementing Regulation (EU) 2024/2984 (the Whitepaper ITS) to prepare white papers, as well as software vendors assisting such entities in creating white papers that are compliant with the Whitepaper ITS.
• The Whitepaper ITS require that white papers are drawn up in XHTML format marking the fields set out in the Annex of the Whitepaper ITS using Inline XBRL.
• These obligations apply from 23 December 2025.

Sanctions under MiCAR and sanctions against Russia

16 October 2025 – ESMA report on Sanctions and measures imposed in member states in 2024.

• The report notes that no administrative sanctions and measures were imposed in member states under MiCAR in 2024.
• The report further provides that in this respect, the lag between the adoption of a text and the establishment of a supervisory and enforcement practice might provide an explanation. Usually, when a new text is adopted, it takes several years before administrative sanctions and measures are issued under those texts. This is particularly evident for MiCAR, which only became applicable very recently and there were only six authorised CASPs in 2024.

23 October 2025 – Council of the EU published 19th package of sanctions against Russia.

• The 19th package of sanctions targets crypto exchanges, among others. 
• Recent activity has evidenced Russia’s increasing use of crypto in circumventing sanctions. In this context, the stablecoin A7A5 – created with Russian state support – has emerged as a prominent tool for financing activities supporting the war of aggression. The 19th package of sanctions introduces sanctions on the developer of A7A5, the Kyrgyz issuer of that coin, and the operator of a platform where significant volumes of A7A5 is traded. Transactions involving this stablecoin have also been prohibited across the EU.
• Additionally, the agreed measures target crypto-related payment services and expand the prohibition on providing certain software, including for banking, finance, commercial space-based services, technical testing and analysis, AI and quantum computing.

Other updates

Ireland

Speeches & statements

24 October 2025 - Remarks by Gavin Curran on innovation in asset management

• Gavin Curran, Head of Funds Supervision Division – Capital Markets & Funds at the Central Bank of Ireland presents on tokenisation at a recent ETF industry event.
• Gavin Curran notes that tokenisation could shorten settlement times, automate corporate-action processing and enable near real time trade transparency. Discussions, more particularly in Europe, centring on how to assess ETF liquidity in different venues would be transformed. Native digital shares recorded on a permissioned blockchain could reduce operational risk and reconciliation breaks. Custody could shift from omnibus accounts into token-based segregated wallets, lowering the barriers to fractional ownership and, by extension, promoting financial inclusion.
• Gavin Curran further notes that from a funds authorisation perspective, the Central Bank of Ireland is having numerous engagements with industry participants on fund tokenisation proposals.

European Union

2026 work programs

1 October 2025 – EBA publishes Work Programme 2026.

• In 2026 the EBA will perform the second annual significance assessment of EMTs and ARTs issued by authorised issuers in the EU, with special consideration for the case of issuers with a presence in a third country. Based on supervisory methodologies and arrangements, any potential direct supervisory activity on significant tokens in 2026, will be performed following a supervisory plan developed in 2025.
• Following the joint EBA-ESMA 2025 report on developments in crypto-asset markets and their analysis of DLT use cases, the EBA will monitor the use of Decentralised Finance (DeFi) as a means for consumers to access EMTs and ARTs and the wider use of commercial bank-issued tokens as settlement assets.
• The EBA will review the NCAs’ practices in relation to notified crypto-asset white papers by EMT issuers under Article 48(1)(b) MiCAR, compliance with the requirements regarding crypto-asset white papers, including the conditions for redemption. This includes a quality review of the white papers and ensuring investors are protected with all necessary information regarding their redemption rights.

3 October 2025 – ESMA publishes 2026 Annual Work Programme.

Throughout 2026, agenda items for ESMA include; 

• Implementing the second phase of the technical solution for EU-level integrated monitoring of crypto-asset markets under MiCAR; 
• Providing guidance to the NCAs on prevention and detection of market abuse in crypto asset trading; 
• Providing opinions on classification of crypto-assets as financial instruments under MiCAR;
• Monitoring the impact of tokenisation on EU financial markets and contributing to the upcoming review of the DLT pilot regulation;
• Providing opinions on authorisation of DLT market infrastructures; 
• Providing guidelines on the exemptions granted to operators of DLT market infrastructures.

ESAs warning on crypto-assets and EBA report on money laundering risks

6 October 2025 - The European Supervisory Authorities (ESAs) warn consumers of risks and limited protection for certain crypto-assets and providers

• The ESAs issued a warning to consumers that crypto-assets can be risky and that legal protection, if any, may be limited depending on which crypto-assets they invest in. 
• This warning is accompanied by a factsheet explaining what MiCAR means for consumers. 
• The ESAs recommend concrete steps consumers can take to make informed decisions before investing in crypto-assets such as checking if the provider is authorised in the EU.

9 October 2025 – EBA published a report on tackling money laundering and terrorist financing (ML/TF) risks in crypto-asset services

• The report is intended to inform supervisory approaches to the authorisation and oversight of CASPs and issuers and to strengthen AML/CFT frameworks. 
• It summarises lessons learnt from actions taken by competent authorities and the EBA in identifying and managing ML/TF risks associated with crypto-asset businesses, both prior to and immediately after the implementation of MiCAR.
• It also describes strategies used by some CASPs and issuers to sidestep national AML/CFT supervision, highlights the safeguards introduced by MiCAR and the revised AML/CFT regime, and identifies key elements that will underpin the effective application of the new EU framework.
• The report notes that the EBA will transfer its standalone AML/CFT powers and tasks to the Anti-Money Laundering Authority by the end of 2025. Nevertheless, it will continue to play a key role in the crypto sector through its MiCAR mandate.

Supervisory convergence / approaches for stablecoin issuers and CASPs

15 October 2025 - The EBA publishes its 2024 report on supervisory convergence.

• The report details the EBA’s extensive efforts to strengthen the alignment of supervisory approaches across member states.
• On digital finance, the EBA prioritised preparations for the implementation of MiCAR focussing on the supervision of ART and EMT issuers. It also developed an EU-wide supervisory handbook and coordinated workshops to ensure convergence in supervisory approaches from the outset.
• The EBA organised five workshops on specific topics:
  
  
  
  • EMT multi-issuance – viability of the business model and application of prudential requirements.
  • Unauthorised EMT activities and cessation of business operations of issuer after the MiCAR application date
  • Intersection of MiCAR and PSD2.
  • Risks and safeguards in relation to EMT multi-issuance models for credit institutions and electronic money issuers.
  • Classification exercise on gold-referencing tokens

24 October 2025 – Verena Ross keynote speech at Belgian Financial Forum event.

• Verena Ross, Chair of ESMA, notes on the topic of supervisory convergence, that there are cases – especially involving systemic or cross-border risks – where coordination alone is often proving insufficient, as well as being complex, lengthy and resource intensive. This is where targeted EU-level supervision can and must complement our ongoing convergence activity.
• Verena Ross notes that large pan-European market infrastructures and CASPs pose risks that can spread quickly across borders, making it unrealistic to be effectively and efficiently addressed through local supervision. Verena Ross therefore strongly welcomes Commissioner Albuquerque’s recent announcement that the European Commission intends to propose empowering ESMA as the supervisor of selected cross-border market infrastructure entities and CASPs.
• Veran Ross further notes that this is not about centralisation of supervision for centralisation’s sake. It is about efficiency, clarity and trust.

Speeches & statements

7 October 2025 - Keynote speech by Alexandra Jour-Schroeder (European Commission) about the future of the EU capital markets.

• Alexandra Jour-Schroeder notes that 'the number one topic that market participants want to discuss with us now is tokenization of financial instruments and how we can unleash the potential of distributed ledger technology in financial markets'.
• Alexandra Jour-Schroeder further notes that 'the EU DLT pilot regime was adopted precisely to support DLT‑based innovation in financial services. We have heard your message that it is too restrictive. Also, ESMA pointed out that in its current form the DLT Pilot Regulation would not be able to achieve its objectives. We intend to upgrade this framework to better reflect market reality. This will be part of the forthcoming savings and investments union package'.

16 October 2025 – Keynote speech by Pedro Machado, member of the Supervisory Board of the European Central Bank (ECB), at the SSM Conference on Digitalisation.

• Pedro Machado notes that 'the pace of digitalisation is also prompting adaptations in regulatory frameworks. In the EU, legislation such as DORA, MiCAR, the Digital Services Act and the AI Act is introducing strict standards for governance, risk management and operational resilience, concerning technologies like generative AI and blockchain technology in particular. Meanwhile, the United States seems to have adopted a more technology-friendly approach, especially regarding AI, blockchain and crypto-assets. Banks must adapt to these evolving frameworks while embedding compliance in their digital transformation strategies'.

17 October 2025 - Statement by Christine Lagarde, President of the ECB, at the fifty-second meeting of the International Monetary and Financial Committee.

• Christine Lagarde notes that 'developments in payments have also brought private innovations, including stablecoins. While their use within the euro area remains limited, stablecoins offer cross-border capabilities, which may bring benefits if properly designed and regulated. At this stage, risks to euro area financial stability appear contained. However, the global nature of stablecoins calls for consistent regulatory frameworks. By implementing MiCAR, the EU has taken an important step in this direction'.
• Christine Lagarde further notes that 'currently, global implementation of the FSB recommendations on global stablecoins remains fragmented, with further progress needed. Fragmented stablecoin regulation raises many challenges for supervisors, including the risk of regulatory arbitrage, particularly if the same stablecoins are being issued from multiple jurisdictions'.

ESRB Publications on DeFi and multi-issuer stablecoin schemes

20 October 2025 – The European Systemic Risk Board (ESRB) published a report on stablecoins, crypto-investment products and multifunction groups.

• In 2025 the ESRB conducted an in-depth analysis of three key topics chosen for their significance in the evolution of crypto-assets: stablecoins, crypto-investment products (CIPs) and multi-function groups (MFGs) active in crypto-asset markets. 
• The report notes that these three topics were chosen because they reflect key dynamics of the crypto-asset ecosystem:
  
  
  
  • Stablecoins raise concerns about spillover risks due to their rapid growth, their steadily increasing ties to traditional finance through backing assets and the risks associated with a potential growing role in payment systems. 
  • CIPs highlight the industry’s growing integration into mainstream finance, with such products becoming increasingly and more readily accessible to institutional and retail investors.
  • While MFGs may offer opportunities to address market demand, the scale and concentration of their activities could give rise to risks that are significant from a macroprudential perspective.

20 October 2025 – ESRB recommendation on third-country multi-issuer stablecoin schemes.

• The ESRB notes that third-country multi-issuer stablecoin schemes involve a union-based stablecoin issuer collaborating with a non-union issuer to jointly issue EMTs. The EMTs issued by both entities share the same technical characteristics and are presented by the issuers as being interchangeable.
• The ESRB has made several recommendations, including:
  
  
  
  • That the European Commission does not consider the schemes as being permitted within the current MiCAR framework. Should the Commission consider otherwise, the schemes should be subject to a dedicated framework providing for adequate safeguards;
  • That the European Commission establish a framework to assess whether third-country legal regimes for stablecoins align with MiCAR;
  • That the European Commission amend Articles 43 and 56 of MiCAR to explicitly include participation in a third-country multi-issuer stablecoin scheme as a criterion for classifying ARTS and EMTs as significant; and
  • That the EBA update guidelines and other regulatory standards applicable to the Union issuers involved in third-country multi-issuer stablecoin schemes.

Eurosystem moving to next phase of digital euro project

30 October 2025 – The Governing Council of the ECB has decided to move to the next phase of the digital euro project.

• This decision follows the successful completion of the preparation phase, launched by the Eurosystem in November 2023, which laid the foundations for issuing a digital euro. 
• The Governing Council’s decision aligns with European leaders’ request to accelerate progress on the digital euro, as recently stated at the October 2025 Euro Summit.
• The ECB Governing Council‘s final decision on whether to issue a digital euro and on what date, will only be taken once the legislation has been adopted.
• Ancillary documents published on the digital euro, include:
   
  • conclusions on the preparation phase;
  • update on the work of the digital euro scheme’s Rulebook Development Group;
  • the selection of providers for digital euro components and related services;
  • a report by a technical workstream into the fit of the digital euro in the payment ecosystem;
  • technical input from the ECB to co-legislators;
  • the ECB Digital Euro User Research report; and 
  • a letter from its President Christine Lagarde to a member of the European Parliament on the integration of climate considerations in developing the digital euro.