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ESMA signals end of MiCA transition period as EU crypto enforcement tightens

The EU’s crypto rulebook is moving into a more decisive enforcement stage, with the European Securities and Markets Authority (ESMA) issuing a fresh warning ahead of the end of transitional periods under the Markets in Crypto-Assets Regulation (MiCA).

ESMA says the transition will expire across the EU on 1 July 2026, after which firms providing crypto-asset services to EU clients without MiCA authorisation will be in breach of EU law and must stop offering such services.

Rather than announcing a new rule, ESMA’s statement clarifies what supervisors expect in the final stretch before the deadline. Unauthorised crypto-asset service providers must have credible and immediately executable wind-down plans in place, including arrangements for offboarding clients and transferring assets to an authorised provider or a self-hosted wallet. By 1 July 2026, those plans must already have been implemented.

ESMA also expects authorised providers to prepare for client migration from unauthorised platforms before the deadline, including through robust onboarding procedures and compliance with anti-money laundering and counter-terrorist financing requirements.

National competent authorities are expected to verify wind-down plans, take action against unauthorised providers, and scrutinise migration strategies to prevent firms from continuing business as usual after the transition ends.

The statement also sharpens the message to firms outside the EU. ESMA says third-country entities are not permitted to provide MiCA services to EU investors or solicit EU clients, except in the narrow case of reverse solicitation. It also warns against outsourcing or delegation arrangements that would allow unauthorised non-EU entities to continue serving EU clients indirectly.

For users, ESMA’s message is straightforward: protections under MiCA depend on dealing with an authorised EU entity, not simply a familiar brand name.

Investors are being urged to verify whether their provider appears in ESMA’s interim MiCA register and, where necessary, move assets to an authorised provider or a self-hosted wallet.

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New Zealand steps up crypto tax enforcement with stronger data scrutiny

New Zealand’s Inland Revenue has stepped up its push for crypto tax compliance, warning investors to review their obligations as authorities expand enforcement using transaction data and new reporting tools. Officials say they have identified around 355,000 users involved in roughly 57 million crypto transactions worth a combined NZ$36 billion.

Under current tax rules, crypto-assets are treated as property, meaning profits from selling, trading, or exchanging digital assets are generally considered taxable income. Those gains must be declared as part of annual income and taxed under standard income brackets.

Inland Revenue says stronger data access and analytics have significantly improved its ability to identify potential non-compliance. The planned adoption of the Crypto-Asset Reporting Framework will further widen that reach by enabling cross-border data sharing and helping authorities detect offshore crypto activity involving New Zealand residents.

Initial compliance action is already underway. Inland Revenue has begun sending letters to individuals flagged for crypto trading activity, urging them to review previous filings and submit an IR3 return where necessary, as officials compare declared income with transaction records.

The move reflects a broader shift in how governments are approaching digital assets. Rather than treating crypto as a loosely visible or marginal market, tax authorities are increasingly folding it into mainstream financial oversight, backed by stronger reporting standards and more detailed transaction-level scrutiny.

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South Korea’s Fair Trade Commission closes consultation on domestic agent rules for foreign platforms

South Korea’s Fair Trade Commission closes its public consultation on proposed amendments to the Enforcement Decree of the Act on Consumer Protection in Electronic Commerce, including new rules on domestic agents for certain overseas businesses.

According to the Fair Trade Commission, an overseas business without an address or place of business in South Korea would be required to designate a domestic agent if it meets at least one of three criteria: sales in the previous year exceeding ₩1 trillion, an average of more than 1 million domestic consumers accessing the cyber mall each month in the three months immediately preceding the end of the previous year, or a Fair Trade Commission request to submit reports and materials.

The proposed rules would also require overseas businesses, once a domestic agent is designated, to submit the agent’s name, address, telephone number, and email address to the Fair Trade Commission in writing without delay and to disclose that information on the first screen of the cyber mall they operate.

The Fair Trade Commission also says the amendments would establish business suspension standards for violations of the domestic agent obligation. According to the proposal, a first violation would lead to a three-month business suspension, a second violation to six months, and a third violation to 12 months.

In the same legislative notice, the Fair Trade Commission also proposed reducing the scope of identity information that platforms facilitating person-to-person transactions must verify for individual sellers, from five items to two: telephone number and email address.

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Illegal cryptocurrency circulation to carry prison sentences in Russia

Russia’s government commission on legislative activity has approved new measures introducing criminal liability for large-scale cryptocurrency operations conducted without the central bank’s authorisation.

The proposal establishes penalties for the illegal organisation of digital currency circulation where significant damage or substantial financial gain is involved.

Under the approved amendments, individuals found to be organising crypto transactions in violation of Russian law could face prison sentences of 4 to 7 years. The rules apply to cases involving harm to individuals, organisations, or the state, or large-scale illicit income.

The draft introduces a new Article 171.7 into the Russian Criminal Code, formally defining ‘illegal organisation of digital currency circulation’ as a punishable offence. The measures are expected to come into force on 1 July 2027, marking a significant tightening of enforcement in the country’s digital asset sector.

By introducing custodial penalties, Russia is raising the legal and financial risks for unlicensed digital asset activity, which could deter informal market participation and push activity towards regulated channels.

In the broader context, it reflects a global trend in which governments are moving to formalise oversight of crypto markets in response to concerns about financial crime, capital flows, and systemic risk.

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EU updates technology licensing competition rules to reflect data and digital markets

The European Commission has adopted revised rules governing technology transfer agreements (Technology Transfer Block Exemption Regulation and Guidelines on the application of Article 101 of the Treaty to technology transfer agreements), updating a framework originally introduced in 2014.

These changes aim to reflect developments in the digital economy, particularly the growing role of data and standardised technologies in enabling interoperability across markets.

Technology transfer agreements allow firms to license intellectual property such as patents, software and design rights, supporting the dissemination of innovation. While such agreements are often considered pro-competitive, they may also create risks if they restrict market access or distort competition.

The revised framework clarifies how these agreements are assessed under Article 101 of the Treaty on the Functioning of the European Union.

The updated rules introduce specific guidance on data licensing and licensing negotiation groups, addressing new market practices.

They also refine conditions under which agreements benefit from exemptions, including simplified criteria for early-stage technologies and clearer safeguards for technology pools linked to industry standards.

Overall, the revision by the EU seeks to improve legal certainty for businesses while ensuring that licensing practices support innovation, competition and the broader functioning of the single market. The new framework will apply from May 2026.

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EU proposes data sharing measures for Google under Digital Markets Act

The European Commission has issued preliminary findings proposing measures for Google under the Digital Markets Act, focusing on access to search engine data.

These measures aim to ensure that third-party services can compete more effectively in digital markets characterised by high concentration.

The proposal would require Google to provide access to key categories of search data, including ranking, query, click and view data, on fair, reasonable and non-discriminatory terms.

Eligible recipients may include competing search engines as well as AI-based services with search functionalities.

Additional provisions address how data should be shared, including frequency, technical access conditions and pricing parameters. The framework also includes safeguards for anonymisation, reflecting the need to balance competition objectives with data protection requirements.

The Commission has opened a public consultation to gather stakeholder input on the proposed measures.

A case that illustrates ongoing efforts to operationalise the Digital Markets Act by addressing structural imbalances in access to data within the platform economy.

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UK moves closer to full crypto regime with FCA consultation

The UK Financial Conduct Authority (FCA) has launched a consultation on guidance for the country’s upcoming crypto regulatory regime, marking another step towards a full framework expected to take effect in October 2027.

The consultation covers key areas including stablecoins, trading platforms, custody and staking, as regulators seek to shape how firms will operate under the new system.

The FCA said the guidance is intended to help firms understand how future requirements will apply and to support the development of a ‘competitive and sustainable’ crypto sector.

Industry feedback is being invited until June 2026, with companies able to begin applying for authorisation from September 2026, ahead of the regime’s full implementation.

Further consultations have already been issued since late 2025, covering market abuse, prudential standards, and operational requirements for crypto firms.

Under the proposed system, all crypto service providers will need authorisation under the Financial Services and Markets Act, with existing registrations not automatically carrying over.

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UK invests in technical colleges to address skills shortages and support industry growth

The UK Government has announced the expansion of Technical Excellence Colleges, with 19 new institutions aimed at strengthening high-level technical education across key sectors.

Backed by £175 million in public funding, the initiative targets industries such as advanced manufacturing, clean energy, defence and digital technologies.

The policy responds to projected labour shortages, with estimates indicating demand for hundreds of thousands of additional skilled workers by 2030.

By aligning training provision with regional economic needs, the colleges are designed to support local labour markets while contributing to national industrial priorities.

An initiative that forms part of a broader strategy to elevate technical education alongside university pathways, expanding access to higher-level learning and improving workforce readiness.

It also emphasises collaboration between institutions, with designated colleges expected to share expertise and raise standards across the system.

By strengthening skills pipelines and supporting sector-specific training, the programme in the UK aims to enhance economic resilience and ensure that workforce development keeps pace with technological and industrial change.

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Crypto banking ban ends in Pakistan as regulated market access opens

Pakistan has lifted its eight-year ban on crypto-related banking activity by allowing financial institutions to work with licensed virtual asset providers.

The State Bank of Pakistan (SBP) issued a circular on 14 April authorising regulated banks to open accounts for entities registered under the Pakistan Virtual Assets Regulatory Authority (PVARA), following the passage of the Virtual Assets Act 2026.

The new framework permits banks to provide access to the sector but bars them from using their own capital or customer deposits to trade, hold, or invest in digital assets.

To reduce risk, institutions must use segregated Client Money Accounts to prevent the mixing of operational and client funds, while also complying with foreign exchange, anti-money laundering, and counter-terrorism financing rules.

Banks are required to conduct thorough due diligence on licensed providers, including verifying regulatory status and monitoring activity.

Any suspicious transactions must be reported to the Financial Monitoring Unit, and financial institutions are expected to adjust internal risk models to reflect the volatility of digital assets.

The regulatory shift follows consultations with global industry players and aims to attract compliant trading platforms to Pakistan’s large crypto user base. Authorities are also exploring blockchain-based infrastructure and stablecoin use cases for improving cross-border payments.

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EU-backed financing boosts Bulgaria’s high-tech sector and innovation growth

The European Investment Fund (EIF) will manage a €210 million financing initiative to support high-tech businesses in Bulgaria, focusing on sectors such as AI, microelectronics and advanced technologies.

The programme operates within the JEREMIE Bulgaria framework, which aims to improve access to capital for small and medium-sized enterprises.

An initiative that reflects a broader EU strategy to strengthen innovation capacity and support sustainable economic growth through targeted investment mechanisms.

The EIF, a subsidiary of the EIB Group, will prioritise equity financing and scale-up support to address structural gaps that often limit the expansion of high-growth companies within national markets.

A programme that also aligns with wider efforts to retain technological talent and reduce reliance on external capital by reinforcing domestic innovation ecosystems.

By supporting dual-use technologies and strategic sectors, the measure contributes to both economic competitiveness and technological resilience.

Through its revolving funding model, reinvested capital is expected to sustain long-term financing capacity, reinforcing the position of Bulgaria within regional venture capital networks and supporting the development of a more mature innovation economy.

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