MiCA regulation approved

The European Parliament finally published the new Markets in Crypto Assets regulation (MiCA) on March 20th 2023.

The new framework is the most significant step so far towards a harmonized and transversal regulatory framework for crypto-assets in the European Union. It provides greater legal certainty for market participants, investors, and consumers, leading to more competitiveness and market share gains.

These new EU rules apply to the issuance, trading, and custody of crypto-assets. In addition, crypto-asset service providers (“CASPs”) will have to comply with anti-money laundering and counter-terrorism financing requirements.

We also must remember the importance of MiCA for data protection, privacy, and consumer protection. As soon as this regulation enters into force, CASPs must meet substantial requirements to protect consumers’ wallets and be subjected to consequential liability if they “lose” investors’ crypto assets. In addition, consumers will now have more access to information about their operations’ risks, costs, and charges.

The next challenge will be adapting and implementing the new framework in place.

Rules governing stable coins will come into force in July 2024, and other provisions later in January 2025.

The Council must approve MiCA’s texts by May 2023 before their publication in the EU Official Journal.

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