The European Union regulation on crypto-asset markets (MiCA) has been adopted by the European Council. MiCA still needs to be accepted by the European Parliament for it to come into force in 2024 at the earliest.
https://cryptoast.fr/conseil-europeen-adopte-reglementation-mica-entree-application-2024/
MiCA in the process of being adopted by the European Union
This morning, the European Council has approved the European Union regulation on crypto-asset markets (Mica). This is the final version.
For the MiCA regulations to be definitively adopted in their current form, it still needs to be approved by the Economic Affairs Committee of the European Parliament. This vote will take place on October 12.
The MiCA regulation having been the subject of a political agreement by the various parties concerned in June 2022, the European Parliament should unsurprisingly approve the text.
Then, once the MiCA regulation is translated by lawyers and linguists and published in the Official Journal of the European Union, the countdown to its implementation will start.
All provisions required by the MiCA regulation will then come into force in January 2024as soon as possible.
Digital Asset Service Providers (PSANs and others) registered with a European Union regulator will have 18 additional months to comply. Information that has not escaped certain companies which have been registering at a sustained pace recently, particularly in Italy.
A European passport will also see the light of day. This will allow, for example, a company registered with the Financial Markets Authority (AMF) to target customers from other countries of the European Union, without having to take additional steps with national regulators.
As things stand, the subject of decentralized finance (DeFi) is still quite unclear. Institutions have yet to define what they consider to be truly ‘decentralised’. Depending on how this notion will be judged, the different DeFi entities will be concerned or not (DAO, protocols, etc.).
The MiCA regulations include the consideration of non-fungible tokens (NFTs) as financial assets (under certain conditions), total ban for companies to remunerate their customers with the lending of stablecoinsinclusion of algorithmic stablecoins in regulation, and more.
💡 Want to know more about what adopting MiCA will entail? Find our explanatory file on the latest measures added to this regulation.
We find the concept of significant CASPs (Crypto Asset Services Provider). MiCa distinguishes between two types of CASPs, which are therefore providers of crypto-assets. Classical PSAPs and significant PSAPs who are those whose annual user volume exceeds 15 million.
This last type of crypto providers will thus be otherwise supervised with regard to the LCBFT regulations and should have an obligation of more capital.
We can see in this the desire to protect European players from American or Asian giants.. However, for platforms more focused on professionals, it would be better to focus on a volume of exchange than on a number of users.
We thank Adan (Association for the Development of Digital Assets) for answering our questions about MiCA.
Source: MiCA Regulation published by the European Council
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Clement Wardzala
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