In October 2022, the Council of the EU published the long-awaited compromise text of the proposed Regulation on Markets in Cryptoassets (MiCA), a “landmark regulation” that, according to the Council, will “put an end to the crypto wild west”. Although political agreement was reached at the end of June 2022, negotiations carried on through technical discussions on the text over the summer, resulting in a number of changes from the political agreement in the final compromise text.
Once in force, MiCA will establish the first comprehensive, pan-EU regulatory regime for the regulation of cryptoassets, including the regulation of (i) cryptoassets issuance activities and (ii) cryptoasset service providers (who will be held to similar regulatory standards to those imposed on investment firms). The European Parliament vote on the text, originally expected to take place in December 2022, will now not take place until February 2023. That is expected to result in a delay to the entry into force of MiCA whilst also giving those interested in this area more time to study the detail of the 380-page text.
In this briefing, we highlight MiCA’s main provisions and some of the key changes coming out of the compromise text when compared with earlier versions.
To learn more about MiCA and other developments in the crypto space, join us for Crypto Boot Camp 2022, our virtual seminar series providing insights on how the regulatory landscape is changing and discussing the future of crypto within the financial services sector. Click here to register.
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