The European Council and the European Parliament have announced a provisional agreement on the proposal for regulation on Markets in Cryptoassets (MiCA), according to an update published by Dechert LLP. The annoucement was made on June 30, 2022, marking a significant milestone in the legislative process.
The text of MiCA was published in the Official Journal of the EU on June 9, 2023 and entered into force on June 29, 2023. The main operative provisions, however, will be applicable from December 30, 2024. Given the increasingly invested stake that corporates and legal professionals worldwide have in the rapidly evolving crypto market, the regulation’s progression is being closely monitored.
Being a new regulatory framework, MiCA looks to address potential risks related to cryptoassets. This includes outlining standards for cryptocurrency issuers and service providers, and stipulating greater consumer protections in cases of market abuse. Therefore, understanding the MiCA regulatory framework is essential for all legal professionals operating within or advising on the crypto market.
With the continuous progress on MiCA, we can anticipate further updates about the legislation’s journey and the subsequent implications it will have on the legal landscape of cryptocurrency. This focus on cryptocurrency regulation signals an increasing willingness on the part of global governing bodies to adapt to the crypto market’s advancement and its growing importance in worldwide financial systems.