Markets in crypto-assets (MiCA)

Briefing 29-09-2023

The Regulation on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937, establishes harmonised rules for crypto-assets at EU level, thereby providing legal certainty for crypto-assets not covered by existing EU legislation. By enhancing the protection of consumers and investors as well as financial stability, the regulation promotes innovation and the use of crypto-assets. The regulation identifies and covers three types of crypto-assets, namely asset-referenced tokens (ART), electronic money tokens (EMT), and other crypto-assets not covered by existing EU law. The legislation regulates issuance and trading of crypto-assets as well as the management of the underlying assets, where applicable, with additional regulatory rules aimed at 'significant' ART and EMT. The agreement resulting from the negotiations aimed at securing liquidity and redemption, and envisaged the inclusion of the environmental impact of crypto-assets in communications to investors. The final act was signed on 31 May 2023 and the regulation will apply from 30 December 2024. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.