European Parliament adopts Regulation on Markets in Crypto-assets (MiCA)
On 20 April 2023, the European Parliament adopted the Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937 (hereinafter »MiCA«). The text of the Regulation was formally approved by the Council of the EU on 16 May 2023. The Regulation will enter into force on the 20th day following its publication in the Official Journal of the EU.
The main purpose of the MiCA Regulation is to unify and regulate the crypto-assets business and to ensure a high level of consumer protection. This should make it easier for Member States to regulate, process and supervise crypto-related products/services and service providers.
The newly adopted Regulation establishes and regulates the following:
- transparency and disclosure requirements for the issuance and admission to trading of crypto-assets;
- the authorization and supervision of crypto-asset service providers and issuers of asset-referenced tokens and issuers of electronic money tokens;
- the operation, organization and governance of issuers of asset-referenced tokens, issuers of electronic money tokens and crypto-asset service providers;
- consumer protection rules for the issuance, trading, exchange and custody of crypto-assets;
- measures to prevent market abuse to ensure the integrity of crypto-asset markets.
It should be noted that the above rules do not apply to financial instruments under current EU financial framework. MiCA therefore does not complement or replace the current system and requirements for the issuance of crypto tokens, which are classified as financial instruments.
How can EY help?
At EY we regularly monitor developments in the field of crypto-assets. Our team of legal experts can help you identify the risks or opportunities such changes may bring and advise you on the best way to adapt and conduct business accordingly.
