The Markets in Crypto-Assets (MiCA)
European crypto-assets regulation
MiCA stands for the Markets in Crypto-Assets Regulation. It is a new regulatory framework for the crypto-assets industry in the European Union (EU) which was approved by the European Council. The goal of MiCA is to provide a clear and comprehensive regulatory framework for crypto-assets, providing legal certainty for businesses operating in this space and protecting consumers from potential risks associated with these types of assets. It aims to provide a consistent and harmonized approach to crypto-assets regulation across the EU, which is important for businesses operating in this space as it provides legal certainty and predictability. Additionally, the regulation aims to protect consumers by ensuring that they are provided with accurate information about crypto-assets and by implementing measures to prevent fraud and money laundering. MiCA also aims to promote the development of innovative technologies in the crypto-assets sector, while ensuring that they are used in a safe and responsible manner.
However, due to technical issues in translating the text into the 24 official languages of the EU, the final vote on the MiCA regulation has been postponed, and is currently scheduled to take place in April 2023. Once the regulation is adopted, there will be a transition period of 12-18 months, to allow businesses to comply with the new requirements. This delay in the adoption of MiCA regulation might change the expected entry into force of the regulation.
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