Market in Crypto Assets Regulation (MiCA) - An update

The Markets in Crypto-Assets Regulation (MiCA) came into force on June 29, 2023, with the provisions pertaining to asset-referenced tokens (ARTs) and electronic money tokens (EMTs) applicable from June 30, 2024. MiCA is a comprehensive regulation that covers the issuance, trading, and provision of services related to crypto-assets in the European Union (EU). It is the first comprehensive regulatory framework for crypto-assets at the EU level.

MiCA introduces a number of new requirements for crypto-asset issuers and service providers, including:

• Authorisation: ART and EMT issuers, as well as crypto-asset exchanges and custodians, will need to be authorized by their national competent authority.
• Disclosure: Crypto-asset issuers will need to publish a white paper that discloses information about the project, the team, and the risks involved.
• Consumer protection: MiCA includes a number of measures to protect consumers, such as requirements for suitability assessments and risk warnings.
• Market integrity: MiCA includes measures to prevent market abuse, such as insider trading and manipulation.

MiCA is a significant development for the crypto-asset market in the EU. It will provide much-needed regulatory certainty and help to protect consumers and investors.

Here are some of the latest updates about MiCA:

• On July 12, 2023, the European Banking Authority (EBA) published a consultation paper on the authorisation of ART issuers. The consultation paper sets out the EBA's proposed approach to assessing the suitability of ART issuers and the requirements that they will need to meet in order to be authorized.
• On October 20, 2023, the EBA published a consultation paper on the qualifying holdings and complaints handling requirements for ART and EMT issuers. The consultation paper sets out the EBA's proposed approach to ensuring that ART and EMT issuers have sufficient financial resources and have in place effective complaints handling procedures.
• The EBA is expected to publish a further consultation paper on the approval of ART white papers and the suitability of members of the management body of ART issuers and crypto-asset service providers (CASPs) in Q3 2023.
• The remaining EBA consultation papers, including prudential mandates, are expected to be made available before the end of 2023.

The implementation of MiCA is a complex process and it is likely to take some time for the full benefits of the regulation to be realised. However, MiCA is a significant step forward in the regulation of crypto-assets in the EU and it is expected to have a positive impact on the market.

And you? What do you think about MiCA?

#MiCA #cryptoregulation #EU #blockchain #cryptocurrency