Landmark moment for Crypto - The EU Parliament passed the Markets in Crypto Act (MiCA)
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On 20th April 2023, the European Parliament gave its final approval to the new Markets in Crypto-Assets Regulation (MiCA) with 517 votes in favour and 38 against. The Regulation forms part of the EU’s wider digital financial framework and aims to promote the use of new financial technologies and ensure consumer protection and financial stability across the EU.
MiCA is the first piece (and the most comprehensive) of EU framework governing crypto-assets and as a regulation, MiCA will be directly applicable across the EU Member States – including Cyprus – without the need for national transposition. The framework imposes various requirements on crypto platforms, token issuers and traders on transparency & disclosure matters, authorization as well as supervision of transactions. In brief, MiCA establishes three distinct, but interrelated, regulatory regimes, namely (i) a regime for issuers of stablecoins (ARTs and EMTs), (ii) a regime for issuers of non-stablecoins (other crypto-assets), and (iii) a regime for entities providing services in respect of crypto-assets, who are referred to as crypto-asset service providers (CASPs).
Following the formal but much anticipated approval by the EU Council, MiCA will be accessible on the EU official journal with effect 20 days later. In the meantime, the European Banking Authority and European Securities Markets Authority will develop technical standards and guidelines to compliment MiCA.
By Michaelina Koutsofta
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