From July, any Welsh Mountain Pony foals born will have to be electronically chipped as well as registered. However farmers believe the new EU legislation may have a detrimental effect on the native breed.
The Welsh Mountain Pony, which is a smaller version of the Welsh Cob, already has to have their birth place registered.
The European Commission says the new legislation will make it easier to trace horses and ponies but farmers and breeders say it may mean less ponies are free to roam the hillside.
Environment correspondent Iolo Ap Dafydd reports.