The EU has adopted a new regulation on markets in crypto-assets (MiCA) that will provide a clear and harmonized legal framework for crypto-asset issuers and service providers across the bloc.
Crypto Regulatory Framework Accepted by European Union Member States
The EU has adopted a new regulation on markets in crypto-assets (MiCA) that will provide a clear and harmonized legal framework for crypto-asset issuers and service providers across the bloc. The regulation covers various types of crypto-assets, including utility tokens, asset-referenced tokens and stablecoins, as well as crypto-asset trading platforms and custodial wallets. MiCA aims to ensure financial stability, investor protection, and innovation in the crypto-asset sector.
The regulation was approved by the European Parliament on April 20, 2023, following a proposal by the European Commission in September 2020. It is part of the digital finance package, which also includes a pilot regime for distributed ledger technology (DLT) market infrastructures, a digital operational resilience act (DORA) and amendments to existing EU financial services rules. The regulation will enter into force in mid-2024, after being published in the Official Journal of the European Union.
MiCA is the first and only legislation of its kind in the world and sets a precedent for other jurisdictions. It introduces registration and authorization requirements for crypto-asset issuers and service providers, as well as compliance with anti-money laundering rules. It also establishes disclosure obligations, consumer rights, and supervision mechanisms for crypto-assets. MiCA will create a single market environment for crypto-assets in the EU and foster the development of this emerging industry.
