EU crypto rules take effect as fewer than one in five firms secure licenses

Fewer than one in five of the region's 1,200 registered crypto companies secured the required license. Companies without a license face shutdown. The rules replace separate national frameworks with a single system. Officials said the measures target crypto scams and aim to protect everyday investors. Large firms such as Coinbase obtained licenses while others did not.

Cross-border gaps An Euronews report stated the rules do not cover companies based outside Europe. Foreign firms can therefore bypass the requirements. EU diplomats said the rules will need revision next year to address tokens created outside the region.

Stablecoin developments Last summer a U.S. law was enacted to support stablecoins. These digital tokens are designed to maintain value by pegging to the U.S. dollar. Officials said 95 percent of such tokens are tied to U.S. currency.