The Markets in Crypto-Assets (MiCA) Regulation is a set of rules adopted by the European Union that aims to bring crypto assets within the scope of financial regulation. Developed within the EU as part of a larger digital finance package, the MiCA Regulation is poised to become one of the world’s most important crypto-specific laws when it comes into force in July 2023. Despite this, the industry has been in a positive outlook over the development, with many expecting other countries to follow the EU’s lead in its enactment of similar legislation.

The MiCA Regulation comes with the goal of enabling access to banking services for specific crypto asset providers in Europe while also providing strict regulation and governance rules to be followed by service providers, traders, and miners. It also applies to all individuals or businesses that are involved in offering, publicly distributing, and trading crypto assets within the EU.

Under the new regulations, the crypto assets are classified into three groups, namely, exchange tokens, security tokens, and e-money tokens. Additionally, service providers and issuers of stablecoins operating within the EU are required to obtain necessary licensing and have accompanying appropriate reserves. The regulations also set out consumer protection rights for investors who are looking to purchase or exchange tokens.

With Europe already having the most crypto-friendly banks in the world and the expected implementation of MiCA, industry experts from companies such as Circle EU remain positive about the growth of the cryptocurrency license. But, as with any investment, it’s important to do the research and be aware of the risks before investing in it.



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