The Vote Is In: The EU’s MiCA Framework Becomes Official

On April 20, 2023, European Parliament officially voted to approve the Markets in Crypto Assets (MiCA) regulation, with expected implementation to take place in 2024.

MiCA aims to provide legal clarity and consumer protection for investors and users of crypto-assets while also promoting innovation and competitiveness in the EU’s digital finance sector. The framework is broad ranging and covers most types of crypto assets and activities that fall outside of existing EU legislation, with the notable exception of NFTs.

Under MiCA, issuers of certain types of crypto assets would be required to obtain authorization from their national regulatory authority before operating in the EU market. The regulation also sets out requirements for the governance, transparency, and investor protection of crypto-asset service providers and also establishes specific rules for so-called stablecoins, including when these are e-money. The vote to implement MiCA shows that governments and regulators are making progress in creating legal frameworks that are modern and accommodative but also prudent.

As the first comprehensive legislative framework that covers all types of digital assets, this is a major step in the evolution of crypto regulation. MiCA will likely influence global regulation of Crypto Assets as other jurisdictions seek to implement similar regulatory oversight.

To learn more about the requirements set forth in the MiCA legislation and the articles within pertaining to market abuse, read our brochure, Clearing the Path for Crypto-Asset Regulation: The EU’s MiCA Explained. 

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Tony Sio

Nasdaq

Tony Sio is the Head of Regulatory Strategy and Innovation at Nasdaq, this includes responsibility for the Nasdaq Market Surveillance solution which is used by over 50 marketplaces and 17 regulators globally.

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