On 20 April 2023, the EU Parliament voted to adopt the text of the EU Markets in Crypto-Assets Regulation (MiCA).

MiCA at a glance

• MiCA creates a common EU-wide framework for the regulation of those crypto-assets which are not already caught by EU regulation.
• It mandates transparency, disclosure, authorisation and supervision requirements for those issuing and trading crypto-assets (which include asset-reference tokens (essentially stablecoins) and e-money tokens). Consumers should be better informed about the risks, costs and charges associated with their operations.
• EU-authorised crypto-asset service providers will be able to passport their services across the EU.
• MiCA will also regulate public offers of crypto-assets, which will support market integrity and financial stability.
• MICA includes market abuse and AML/CTF preventative measures.
• Significant service providers will have to disclose their energy consumption.

Transfer of Funds Regulation

The Parliament also approved the text of the Transfer of Funds Regulation, which will trace transfers of crypto-assets like Bitcoins and e-money tokens.

What's next?

The texts now have to be approved by the Council and will then be published in the EU Official Journal. They will enter into force 20 days later; this is expected to happen in July 2023.

The MiCA provisions will be phased in, with the rules on stablecoins to start to apply from 12 months after MiCA enters into force (ie in July 2024) and the measures applicable to issuers of other crypto-assets and crypto-asset service providers to start 6 months later (ie in January 2025), when the Transfer of Funds rules will also apply.

How can we help?

Our team has significant experience in navigating the world of crypto and the technology that supports it.  Please be in touch if you require assistance.