MiCA – Markets in Crypto-Assets regulation memo

On April 20, the majority of MEPs approved the Markets in Cryptoassets (MiCA) Regulation, thus introducing a comprehensive crypto law that will apply directly across all EU Member States. This is a milestone for the industry that may encourage other jurisdictions to follow. The uniform legal framework for crypto-assets is established to protect consumers and investors, guarantee fair competition and transparency, ensure market integrity and financial stability, reduce the negative environmental impact (particularly the high carbon footprint) and promote innovation. Tracing crypto-asset transfers will be a major step to prevent money laundering, terrorist financing and other crimes. NFTs fall outside the scope of the regulation to the extent that they are unique and not fungible with other crypto-assets (see Article 4 of the MiCA Regulation. In addition to a list of requirements for crypto-asset issuers and service providers, the MiCA Regulation has some other important industry implications.