MiCA, the new EU regulation on cryptocurrencies

The MiCA was introduced by the European Union with the aim of establishing a new regulation on cryptocurrencies. The Markets in Crypto-Assets Regulation aims to protect consumers and ensure financial stability. The regulatory framework will be applied in the various member states, national parliaments will not necessarily have to implement it.

Discipline i crypto-asset

The regulation, which received the green light on May 16 from European finance ministers, is the first regulatory framework in the eurozone that regulates crypto-assets, fundamental to digital money, which also include cryptocurrencies. The MiCAreads a note, refers to a “rdigital representation of value or rights that can be transferred and stored electronically, using the technology distributed ledger or a similar technologyā€¯. The news concern the obligations of transparency and the need to provide information on the issuance of digital financial instruments. In addition, a process for licensing and supervising crypto-asset-related service providers, such as token issuers, is established. A fundamental point concerns the greater protection of consumers for the processes of issuing, negotiating, exchanging and maintaining electronic products over time.

A legal note

Importantly, MiCA is a regulation and not a European directive, this means that its application will be carried out directly in the states of the European Union. The purpose in legal terms is to regulate the activities they deal with crypto-assets which are currently not governed by current legislation within the eurozone. The objective of the European Parliament is to regulate the world of digital finance so as to guarantee competition and minimize risks.

The digital operational resilience proposal

In addition to the MiCA, there is a proposal aimed at digital operational resilience to change some European regulations relating to financial services in general.

Objectives in brief

There are four objectives of the EU Regulation: legal certainty, support for innovation and fair competition, guarantee of financial stability and protection of consumers and investors. First, it is necessary to create a legal framework that allows the digital finance market to develop within the European Union. Furthermore, the EU wants to promote the development of cryptocurrencies and their innovation. The European regulation is also aimed at minimizing risks in the field of digital investments. Last but not least, it is necessary to protect consumers and investors.

#MiCA #regulation #cryptocurrencies
2023-05-20 05:30:00

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